An Increase in the Level of Prices of Goods and Services

question 70

Multiple Choice

An increase in the level of prices of goods and services will do what to the long-run aggregate supply curve?

• A) Shift it to the right
• B) Shift it to the left
• C) Not shift the curve at all
• D) Depends upon the long-run aggregate demand curve

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Definitions:

Insecure Finances

A state of having unstable financial resources, which can lead to stress, anxiety, and inability to meet basic needs or plan for the future.

Income

refers to the money received, especially on a regular basis, for work or through investments.

Individual-Level Explanation

An approach to understanding phenomena by looking at the individual factors, such as personal choices and behaviors, that contribute to the outcome.

Macrolevel Explanation

An explanation that focuses on large-scale social processes and structures, considering the broader societal context.