For the Following Question(s),assume That the Economy Is in Long-Run

question 53

Multiple Choice

For the following question(s) ,assume that the economy is in long-run equilibrium in the aggregate demand/aggregate supply model and that some sort of event takes place.In each case,mark the most likely impact of the event on the aggregate demand/aggregate supply diagram given below.
Figure 10-19

-Refer to Figure 10-19.A major technological advance occurs.

• A)The aggregate demand curve would shift to the right.
• B)The aggregate demand curve would shift to the left.
• C)Both the short-run and the long-run aggregate supply curves would shift to the right.
• D)Both the short-run and the long-run aggregate supply curves would shift to the left.

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Definitions:

Variable Costs

Variable costs are expenses that change in proportion to the activity of a business, such as sales volume or production levels.

Credit Terms

The conditions, including payment deadlines and interest rates, under which credit is extended to a borrower.

Aging Schedules

Timetables in accounting that categorize a company's accounts receivable according to the length of time an invoice has been outstanding.

Overdue Accounts

Financial accounts or receivables that have not been paid by the due date.