AD - AS Shocks

question 62

Multiple Choice

AD - AS Shocks
-On the graph above,suppose the economy is at point F when there is a permanent positive supply shock.The new long-run equilibrium is at point ________.

• A)F
• B)H
• C)I
• D)G
• E)none of the above

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Definitions:

Quantity

The amount or number of a material or immaterial good considered as a unit or total.

Average Total Costs

The total cost of production (including both fixed and variable costs) divided by the number of units produced, representing the average expense per unit.

Marginal Cost

The price associated with the creation of one more unit of a product or service.

Average Total Cost

The per-unit cost of production, calculated by dividing the total cost of production by the quantity of output produced.