What Happens to Prices and Output When the Long-Run Aggregate-Supply

question 58

Multiple Choice

What happens to prices and output when the long-run aggregate-supply curve shifts left?

• A) Prices and output both increase.
• B) Prices and output both decrease.
• C) Prices increase and output decreases.
• D) Prices decrease and output increases.

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Definitions:

Market Opportunities

Areas or gaps in the market that a company can exploit to grow its business, often identified through market research.

Capital Investment

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment to boost its long-term revenue.

Qualitative Characteristic

A feature that defines or characterizes the quality of information in accounting and financial reporting, such as relevance or reliability.

Expected Value Analysis

A form of analysis that assigns likelihoods (probabilities) to various inputs, thus incorporating uncertainty directly into the output (answer).