Better Short-Run Use of Current Capacity

question 105

Multiple Choice

Better short-run use of current capacity

• A)Moves the economy closer to the production possibilities curve,while long-run growth shifts that curve outward.
• B)Increases capacity,while long-run economic growth increases capacity utilization.
• C)Shifts the aggregate supply curve outward,while long-run economic growth moves the economy up the aggregate supply curve.
• D)And long-run growth both shift the aggregate supply curve outwarD.In the short run,the production possibilities curve is fixed,but in the long run,it can shift outward with economic growth.

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Definitions:

Product Price

The amount of money required to purchase a specific product or service, often influenced by production costs, market demand, and competition.

Lower Costs

The process or strategy of reducing expenses incurred in operations, production, or providing services to increase profitability.

Competitive Advantage

A unique attribute or position that allows a company to outperform its competitors.

Customer's Tastes

Customer's tastes refer to the preferences, inclinations, and discretionary choices of consumers that influence their purchasing behavior and affect how businesses market and sell products or services.