Why Does the Short-Run Aggregate Supply Curve Shift to the Left

question 91

Multiple Choice

Why does the short-run aggregate supply curve shift to the left in the long run,following an increase in aggregate demand?

• A)Workers and firms adjust their expectations of wages and prices downward and they accept lower wages and prices.
• B)Workers and firms adjust their expectations of wages and prices downward and they push for higher wages and prices.
• C)Workers and firms adjust their expectations of wages and prices upward and they push for higher wages and prices.
• D)Workers and firms adjust their expectations of wages and prices upward and they accept lower wages and prices.

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Definitions:

Tuberculosis

A contagious bacterial infection caused by Mycobacterium tuberculosis, affecting mainly the lungs but can spread to other organs.

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Medicinal substances used to kill or inhibit the growth of bacteria, crucial for treating bacterial infections.

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A well-substantiated explanation of some aspect of the natural world, based on a body of facts that have been repeatedly confirmed through observation and experimentation.

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Situations or discussions that are not based on or related to the principles of science, often involving personal beliefs, cultural practices, or speculative ideas.