Exhibit 14A-5 Macro AD-AS Model

question 62

Multiple Choice

Exhibit 14A-5 Macro AD-AS Model

-Economic growth is represented in Exhibit 14A-5 by a:

• A) leftward shift in the long-run aggregate supply curve (LRA
• S).
• B) inward shift of the production possibilities curve.
• C) rightward shift in the long-run aggregate supply curve (LRA
• S).
• D) movement along the long-run aggregate supply curve (LRA

---

Definitions:

Net Markups

This term refers to the difference between the cost of a product and its selling price, minus any discounts or allowances.

Net Markdowns

The reduction in the selling price of goods, subtracted from the original or previous selling price, often to clear surplus inventory.