All Else Being Equal,as the Population Ages and Many People

question 142

Multiple Choice

All else being equal,as the population ages and many people leave the labor force,

• A) the unemployment rate will rise.
• B) the price level will fall.
• C) long-run aggregate supply will fall.
• D) long-run aggregate supply will be unaffected.
• E) aggregate demand must rise.

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Definitions:

Marginal Cost

The additional cost incurred in the production of one extra unit of a good or service.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced; these costs decline as production increases.

Marginal Cost

The financial cost of producing an extra unit of a good or service.

Average Total Cost

The total cost of production divided by the quantity of output produced.