The Long-Run Aggregate Supply Curve Will Shift to the Right

question 24

Multiple Choice

The long-run aggregate supply curve will shift to the right if the:

• A) potential output of the economy expands.
• B) economy loses productive capacity.
• C) economy experiences a supply shock.
• D) profit levels of firms increase.

Develop negotiation skills for salary discussions based on industry standards.

Understand the concept of equilibrium in the labor market and the factors that can shift demand and supply.

Apply the concept of marginal productivity to determine the optimal number of workers to hire for maximizing profits.

Associate changes in the demand and supply of labor with changes in the equilibrium wage and quantity of labor.

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Definitions:

Risk Taker

An individual or entity that is willing to take on risk in pursuit of reward, often in the context of business or investment.

Private Enterprise

Businesses that are owned and operated by private individuals or groups, rather than being controlled or owned by the government.

Tolerate Ambiguity

Tolerating ambiguity refers to the ability to remain productive and calm when situations are uncertain or unclear.

Financial Success

The achievement of financial objectives and stability, often characterized by an individual's or organization's ability to generate and manage wealth effectively.