Both the Long-Run and Short-Run Aggregate Supply Curves Will Shift

question 283

Multiple Choice

Both the long-run and short-run aggregate supply curves will shift when

• A) the government increases defense spending.
• B) an event occurs which is expected to last only a short period of time.
• C) they are both upward sloping.
• D) the endowments of the factors of production change.

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Definitions:

Goal Shielding

The cognitive process of maintaining focus on a goal by avoiding distractions and disregarding irrelevant information or activities.

Committed

Describes a state of being dedicated or loyal to a cause, activity, or mission.

Duplex Mind

A concept suggesting the mind has two different processing systems, one automatic and unconscious, and the other deliberate and conscious.

Automatic System

A cognitive system that operates quickly and without conscious effort, responsible for fast and intuitive reactions and judgements.