For a Given Level of Inflation, If Bright Prospects for the Future

question 122

Multiple Choice

For a given level of inflation, if bright prospects for the future of the economy cause businesses to increase their investment in new capital, then the ________ shifts ________.

• A)aggregate demand curve; right
• B)short-run aggregate supply line; downward
• C)aggregate demand curve; left
• D)short-run aggregate supply line; upward

---

Definitions:

Substitute Products

Goods and services that perform very similar functions and can be used in place of one another.

Recession

A period of economic decline across a significant portion of an economy, lasting for a few months or more.

Asian Americans

A diverse group of Americans of Asian descent, encompassing a variety of cultures, languages, and backgrounds.

Socioeconomic Factors

Elements that describe the social and economic conditions influencing an individual's or group's behavior and well-being.