When Would the Long-Run Aggregate Supply Curve Shift Right

question 163

Multiple Choice

When would the long-run aggregate supply curve shift right?

• A)When immigration increases or the government makes a substantial increase in the minimum wage.
• B)When immigration decreases or the government abolishes the minimum wage.
• C)When immigration increases or the government abolishes the minimum wage.
• D)When immigration decreases or the government makes a substantial increase in the minimum wage.

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Definitions:

Variable Input

An input used in production that can be adjusted in the short term, such as labor or raw materials.

Short Run

A period in which at least one input or resource is fixed, limiting the capacity to adjust all factors of production.

Increasing Returns

The situation in which output increases by a larger proportion than the increase in inputs used in production.

Workers

Individuals who perform tasks or work for compensation, typically within the structure of employment by organizations or companies.