Suppose a Developing Country Experiences a Reduction in Machinery and Capital

question 46

Multiple Choice

Suppose a developing country experiences a reduction in machinery and capital equipment as foreign entrepreneurs decrease 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:

Significantly Less

A statistical term used to indicate that one set of data is considerably lower than another with a level of statistical significance.

Variance

A statistic that measures the spread between numbers in a data set, indicating how far each number in the set is from the mean.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the members of a group differ from the mean value of the group.

Test Statistic

A value derived from sample data that is utilized to determine the rejection of the null hypothesis in statistical hypothesis testing.