Suppose a Developing Country Experiences a Reduction in Machinery and Capital

question 15

Multiple Choice

Suppose a developing country experiences a reduction in machinery and capital equipment as foreign entrepreneurs decrease the amount of investment in the economy.As a result,

• A)the long-run aggregate supply curve will shift to the right.
• B)the long-run aggregate supply curve will shift to the left.
• C)the economy will move up along the long-run aggregate supply curve.
• D)the economy will move down along the long-run aggregate supply curve.
• E)long-run aggregate supply will become more sensitive to price.

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Definitions:

Occipital Lobe

The region of the brain located at the back of the head, responsible for processing visual information.

Limbic System

A complex system of nerves and networks in the brain, involving several areas near the edge of the cortex concerned with instinct and mood. It controls the basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).

Satisfaction

The feeling of pleasure or contentment resulting from the fulfillment of a desire, need, or expectation.

Feeding Behaviors

The actions or strategies by which organisms obtain food, influenced by genetic, environmental, and psychological factors.