Within the AD/AS Model, an Increase in Capital Formation That

question 178

Multiple Choice

Within the AD/AS model, an increase in capital formation that permits the economy to achieve a larger output will

• A) increase long-run aggregate supply.
• B) increase short-run aggregate supply, but long-run aggregate supply will be unaffected.
• C) increase aggregate demand.
• D) decrease aggregate demand.

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Definitions:

Sociable

Characteristic of one who seeks and enjoys the company of others; outgoing and friendly.

Competent

Having the necessary ability, knowledge, or skill to do something successfully or efficiently.

Self-esteem

An individual's subjective evaluation of their own worth or value.

Extraversion

A personality trait characterized by sociability, talkativeness, assertiveness, and high amounts of emotional expressiveness.