The Long-Run Aggregate Supply Curve Would Shift Right If the Government

question 138

Multiple Choice

The long-run aggregate supply curve would shift right if the government were to

• A)increase the minimum-wage.
• B)make unemployment benefits more generous.
• C)raise taxes on investment spending.
• D)None of the above is correct.

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Definitions:

Tables

Arrangements of data in rows and columns that systematically display information.

Comparative Advantage

The ability of an individual, firm, or country to produce a certain good at a lower opportunity cost than its trading partners.

Total Output

Total output refers to the total value of all goods and services produced in an economy over a specific period.

Specialization

The process by which individuals or entities focus on producing a single or a few products or services, leading to increased efficiency and productivity in the economy.