How Are Prices and Output Affected When the Long-Run Aggregate

question 51

Multiple Choice

How are prices and output affected when the long-run aggregate supply curve shifts left?  

• A) Prices increase and output increases. 
• B) Prices decrease and output decreases. 
• C) Prices increase and output decreases. 
• D) Prices decrease and output increases.

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Definitions:

Client Confidentiality

The ethical obligation of professionals to keep information related to their clients secure and private.

Confidential Information

Sensitive data or details that are restricted to certain individuals to protect privacy or competitive advantage.

Marginal Utility

The change in utility an individual gains from consuming an additional unit of a good or service.

Rate Of Substitution

The rate at which a consumer can replace one good with another while maintaining the same level of utility.