-Refer to the Above Figure

question 127

Multiple Choice

-Refer to the above figure. Assume that B is the current long-run aggregate supply (LRAS) curve and that E is the current short-run aggregate supply (SRAS) curve. If a new discovery of large oil fields in Florida led to an increase in the nation's productive capacities, then we could expect the LRAS curve and the SRAS curve to

• A) remain B and E.
• B) move to A and D.
• C) move to C and F.
• D) move to A and F.

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Definitions:

Whole Number

A number without fractions or decimals; an integer that can be positive, negative, or zero.

Decimal Place

The position of a number to the right of a decimal point, indicating the value's fractional part.

Multiplier

A number by which another number is multiplied to yield a product.

Fraction

A mathematical expression representing the division of one quantity by another, denoting parts of a whole or a ratio.