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

question 42

Multiple Choice

Why does the short-run aggregate supply curve shift to the right in the long run,following a decrease 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:

Personal Selling

The process of interacting one-on-one with someone to provide information that will influence a purchase or action.

Digital Transformation

The process of using digital technologies to create new or modify existing business processes, culture, and customer experiences.

Advanced Economies

Countries with highly developed industrial infrastructures, high standards of living, and significant levels of income and economic growth.

Salespeople

Individuals who sell products or services to customers, often working on commission and focusing on meeting customer needs and closing sales.