Which of the Following Is a Crucial Factor in Determining

question 25

Multiple Choice

Which of the following is a crucial factor in determining whether aggregate supply shifts quickly or slowly to restore equilibrium at potential output?  

• A) how quickly planned investment spending adjusts to changes in population growth 
• B) how quickly planned consumption spending adjusts to changes in the price level and nominal wages 
• C) how quickly technology changes to increase aggregate supply 
• D) how quickly real wages adjust to restore full employment in the labour market

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Definitions:

Intensity

The degree of strength, force, or energy with which a phenomenon or a reaction occurs.

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Trichromatic Theory

A theory of color vision that proposes the human eye has three types of receptors with differing sensitivities to different light wavelengths, corresponding to red, green, and blue.

Occipital Lobe

The region of the brain located at the back of the head, responsible for processing visual information.