The Long-Run Aggregate Supply Curve Shifts Right If

question 24

Multiple Choice

The long-run aggregate supply curve shifts right if

• A)the price level rises.
• B)the price level falls.
• C)the capital stock increases.
• D)the capital stock decreases.

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Definitions:

Keynes

Refers to John Maynard Keynes, a British economist whose theories on government economic intervention laid the foundation for modern macroeconomics.

Work Effect

The impact on labor supply and productivity due to changes in economic policies or conditions.

Basic Assumption

An underlying principle or idea that is accepted as true without proof, forming the basis for further reasoning or behavior.

Level Of Investment

The amount of spending by businesses on capital goods, such as factories and machinery, which can influence economic growth.