Suppose a Developing Country Receives More Machinery and Capital Equipment

question 209

Multiple Choice

Suppose a developing country receives more machinery and capital equipment as foreign entrepreneurs increase the amount of investment in the economy.As a result

• A)the long-run aggregate supply curve will shift to the right.
• B)the long-run aggregate supply curve will shift to the left.
• C)the economy will move up along the long-run aggregate supply curve.
• D)the economy will move down along the long-run aggregate supply curve.

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Definitions:

Payment Interval

The interval at which payments are issued, like monthly, every three months, or once a year.

Periodic Interest Rate

The interest rate charged or paid over a particular period of time, often less than a year, such as monthly or quarterly.

Annuity

A monetary product ensuring regular payouts to an individual, commonly incorporated into strategies for retirement.

Payment Interval

The frequency at which payments are made or received, such as monthly, quarterly, or annually.