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

question 173

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.
• E)Workers and firms adjust their expectations of output downward, firms accept lower profits, and workers accept lower wages.

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Definitions:

Anorexia Nervosa

A mental disorder characterized by an intense fear of gaining weight and a distorted body image, leading to severe restriction of food intake.

Pyromaniac

An individual with an irresistible impulse to start fires, driven by an emotional satisfaction from seeing the fire and its consequences.

Apathy

A lack of feeling, emotion, interest, or concern about something.

Anxiety Disorder

A mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one’s daily activities.