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:

Truth Table

A mathematical table used in logic to determine whether a compound statement is true or false, based on the truth values of its components.

Contingent Statement

In the Logic of Statements means a grammatically correct expression that turns out to be true under at least one possible assignment of truth values to its component simple statements and false under another possible assignment of truth values to its component simple statements.

Truth Values

The attribution of truth or falsity to propositions or statements, which in classical logic are typically denoted as true or false.

Translation

The process of translating words or text from one language into another.