Over Time in a Growing Economy, the Long-Run Aggregate Supply

question 423

Multiple Choice

Over time in a growing economy, the long-run aggregate supply curve will

• A) become horizontal at the long-run potential price level.
• B) shift rightward.
• C) shift leftward.
• D) become increasingly steep.

---

Definitions:

Inefficiency

The state of not achieving maximum productivity or economic benefit from resources due to suboptimal allocation, processes, or decisions.

Poverty Line

A threshold income level below which an individual or family is considered financially incapable of meeting basic living expenses.

Quartile

A statistical term describing each of four equal groups into which a population can be divided based on a particular variable.

Annual Family Income

The total amount of money earned by all members of a family within one year.