Why Does the Short-Run Aggregate Supply Curve Shift to the Left

question 91

Multiple Choice

Why does the short-run aggregate supply curve shift to the left in the long run,following an increase in aggregate demand?

• A)Workers and firms adjust their expectations of wages and prices downward and they accept lower wages and prices.
• B)Workers and firms adjust their expectations of wages and prices downward and they push for higher wages and prices.
• C)Workers and firms adjust their expectations of wages and prices upward and they push for higher wages and prices.
• D)Workers and firms adjust their expectations of wages and prices upward and they accept lower wages and prices.

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Definitions:

Poverty

A socioeconomic condition characterized by a significant lack of financial resources and essentials for a comfortable living standard.

Grandparents

The parents of one's parents, often playing significant roles in family structure, support, and intergenerational relationships.

Stressed

Experiencing mental or emotional strain or tension resulting from adverse or demanding circumstances.

Healthy

describes a state of complete physical, mental, and social well-being, not merely the absence of illness or infirmity.