Explain How Each of the Following Events Would Affect the Long-Run

question 92

Essay

Explain how each of the following events would affect the long-run aggregate supply curve.
a.A lower price level
b.A decrease in the labor force
c.A decrease in the quantity of capital goods
d.Technological change

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Definitions:

Quotas

Numerical limits imposed on the quantity of a specific good that may be imported.

Positive Balance

A financial situation where income exceeds expenses or assets surpass liabilities, often considered a sign of financial health.

International Trade

The exchange of goods, services, and capital between countries or territories.

20th Century

Refers to the period from January 1, 1901, to December 31, 2000, marking the twentieth century of the Gregorian calendar.