If the Price Level Falls by 5%,then All Else Being

question 25

Multiple Choice

If the price level falls by 5%,then all else being equal,the long-run aggregate supply curve will:

• A) remain unchanged.
• B) shift to the right to reflect an increase in output of 5%.
• C) shift to the right to reflect an increase in output of more than 5%.
• D) shift to the left to reflect a decrease in output of 5%.
• E) shift to the left to reflect a decrease in output of more than 5%.

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Definitions:

Marketing Mix

A blend of several marketing elements—including product, price, place, and promotion—used to market and sell a product effectively.

Value

The importance, worth, or usefulness of something to someone.

Supply Chain Relationships

The interactions and partnerships between all participants involved in the flow of goods and services from the original producer to the end consumer, including suppliers, manufacturers, and retailers.

Profitability

A financial performance measure indicating the degree to which a company or business makes more money than it spends.