Over Time in a Growing Economy, the Long Run Aggregate

question 72

Multiple Choice

Over time in a growing economy, the long run aggregate supply curve will

• A) move so as to match the short run aggregate supply (SRAS) curve.
• B) shift outward to the right.
• C) shift inward to the left.
• D) become increasingly steep.

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Definitions:

Varies

Describes how something changes or differs across different situations, locations, or points in time.

Time

A continuum that lacks spatial dimensions and in which events occur in apparently irreversible succession from the past, through the present, into the future.

Circumstances

The conditions or facts affecting a particular event or situation, often influencing the outcome or actions of individuals.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits an individual, investor, or business misses out on.