Some of the Factors That Can Shift the Short-Run Aggregate

question 139

True/False

Some of the factors that can shift the short-run aggregate supply curve can also cause a shift in the long-run aggregate supply curve.

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Definitions:

Efficient Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded, leading to an optimal allocation of resources.

Nonrival

A characteristic of a good or service that implies one person's consumption does not reduce its availability to others.

Public Good

A good that is non-excludable and non-rival in consumption, meaning no one can be prevented from using it and one person's use does not reduce availability to others.

Marginal Social Benefit

The additional benefit to society from producing one more unit of a good or service.