An Economy Has Experienced a Rightward Shift of Its Long-Run

question 66

Multiple Choice

An economy has experienced a rightward shift of its long-run aggregate supply curve and is now producing on that new long-run aggregate supply curve.It is reasonable to expect that:

• A) the unemployment rate has fallen.
• B) the unemployment rate has been unaffected.
• C) the inflation rate has risen.
• D) the price level has risen.
• E) productivity has fallen.

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Definitions:

Swim Bladders

Gas-filled sacs in fish that help maintain buoyancy in the water column.

Countercurrent Exchange

A mechanism in organisms where two fluids flow in opposite directions, exchanging properties (such as heat or solutes) to allow for efficient transfer.

Concurrent Exchange

A mechanism often seen in biological systems where two substances flow in opposite directions and exchange properties or elements, enhancing efficiency.

Oxygen Extracted

The process of removing oxygen from a compound or an environment, often to produce a specific chemical reaction.