Why Does the Short-Run Aggregate Supply Curve Shift to the Left

question 91

Multiple Choice

Why does the short-run aggregate supply curve shift to the left in the long run,following an increase in aggregate demand?

• A)Workers and firms adjust their expectations of wages and prices downward and they accept lower wages and prices.
• B)Workers and firms adjust their expectations of wages and prices downward and they push for higher wages and prices.
• C)Workers and firms adjust their expectations of wages and prices upward and they push for higher wages and prices.
• D)Workers and firms adjust their expectations of wages and prices upward and they accept lower wages and prices.

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Definitions:

Avoidant

Relating to or indicative of a personality trait or behavior characterized by a tendency to withdraw from or avoid emotional intimacy.

Secure

Characterized by safety or the state of being free from danger or threat, often used in the context of cyber security or emotional stability.

Psychosocial Development

A theory that proposes that an individual’s psychological development occurs in a series of predetermined stages, emphasizing the effects of social relationships on psychological development.

Generativity

A concern for establishing and guiding the next generation, usually observed in middle adulthood.