Suppose There Is a Drop in the Price of an Important

question 104

Multiple Choice

Suppose there is a drop in the price of an important factor input.What will be the effect on the aggregate supply curve?

• A)There will be movement to the left,along the AS curve.
• B)The AS curve will shift to the left.
• C)There will be movement to the right,along the AS curve.
• D)The AS curve will shift to the right.
• E)There will be no change in the AS curve.

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Definitions:

Statute

A statute is a formal written law enacted by a legislative body, as opposed to laws derived from judicial decisions (common law) or executive actions.

Order-In-Council

A formal decision made by the executive branch of government, often requiring approval from the head of state or their representatives.

Administrative Bodies

Organizations or agencies created by the government to implement laws, regulations, and public policies.

Natural Justice

Procedural fairness in decision-making.