A Leftward Shift in the Aggregate Supply Curve Generates a ________

question 137

Multiple Choice

A leftward shift in the aggregate supply curve generates a ________ inflation and ________ output.

• A) demand-pull; lower
• B) cost-push; higher
• C) demand-pull; higher
• D) cost-push; lower

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Definitions:

Nonrenewable Natural Resource

Things such as oil, natural gas, and metals, that are either in actual fixed supply or that renew so slowly as to be in virtual fixed supply when viewed from a human time perspective.

Timber

Wood that has been processed into beams and planks, a stage in the production of materials for building and furniture making.

Alternative Fuels

Fuels other than fossil fuels, often produced from renewable resources, used to power vehicles and machinery.

Economically Viable

Capable of generating sufficient income to cover expenses and produce a profit.