Explain How Each of the Following Events Would Affect the Long-Run

question 23

Essay

Explain how each of the following events would affect the long-run aggregate supply curve.
a.A lower price level.
b.A decrease in the labour force.
c.A decrease in the quantity of capital goods.
d.Technological change.
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Definitions:

Operating Activities

Business actions directly related to producing and delivering goods and services, which are reflected in the company's cash flow.

Investing Activities

Financial actions that involve the purchase and sale of long-term assets and other investments not considered to be cash equivalents.

Financing Activities

Transactions that involve raising capital or repaying funds, including issuing shares, borrowing, or repaying debt.

Financial Statement Users

Individuals or groups, such as investors, creditors, and regulatory agencies, who analyze financial statements to make informed decisions.