In the Aggregate Demand-Aggregate Supply Model, Everything Else Remaining Unchanged

question 61

Multiple Choice

In the aggregate demand-aggregate supply model, everything else remaining unchanged, an increase in capital stock shifts the_____ to the_____ .

• A)long-run aggregate supply; right
• B)aggregate demand; right
• C)short-run aggregate supply; left
• D)aggregate demand; left

---

Definitions:

Collapse

the process of something falling down or caving in suddenly, often due to structural failure.

Tsunami

A series of ocean waves with extremely long wavelengths caused by large-scale disturbances such as earthquakes, volcanic eruptions, or underwater landslides.

Recurrence Intervals

The average time between events such as earthquakes, floods, or volcanic eruptions, used in risk assessment and planning.

Prehistoric Earthquakes

Earthquakes that occurred before historical records were kept, studied primarily through geologic evidence.