A Country's Long-Run Aggregate Supply Curve Will Shift to the Left

question 57

Multiple Choice

A country's long-run aggregate supply curve will shift to the left when there is (are)

• A) fewer regulatory impediments to business.
• B) a discovery of new oil reserves in that country.
• C) a reduction in the labor force.
• D) a reduction in the money supply.

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Definitions:

Initial Capital Investment

The total amount of money used to start a business or project, including costs for property, equipment, and legal fees.

Accounting Rate of Return

A financial ratio that measures the return on investment from assets, indicating the efficiency of generating profits from its resources.

After-Tax Net Income

The amount of income that remains after all applicable taxes have been subtracted from the total revenue.

Initial Investment

The original sum of money used to start a business venture or investment.