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:

Contra Equity

An equity account that decreases the total equity of a company, often related to withdrawals or deductions from the total equity.

Common Stock Outstanding

The shares of a corporation's stock that are issued and held by investors, excluding treasury shares.

Common Stock Issued

Shares of a company that have been allocated to shareholders, representing ownership interest in the corporation.

Cumulative

Refers to an overall amount that includes all accumulated adjustments, additions, charges, and other relevant items over a period.