Suppose a developing country experiences a reduction in machinery and capital equipment as foreign entrepreneurs decrease the amount of investment in the economy. As a result,
A) the economy will move up along the long-run aggregate supply curve.
B) the long-run aggregate supply curve will shift to the left.
C) the long-run aggregate supply curve will shift to the right.
D) the economy will move down along the long-run aggregate supply curve.
B
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Refer to Figure 2-13. What is the opportunity cost of producing 1 ton of pineapples in Guatemala?
A) 1/2 of a ton of coconuts B) 1 1/3 tons of coconuts C) 2 tons of coconuts D) 180 tons of coconuts
A perfectly competitive firm's ________ point is the lowest point on its AVC curve.
A. loss-maximizing B. shut down C. break-even D. profit-maximizing
A monopolist that is making a profit is producing where which of the following occurs?
A. P = MC. B. P = AC. C. MC = AC. D. P > AC.
The World Bank makes loans primarily to
A. developing nations. B. nations without national debt. C. nations without free markets, such as North Korea. D. highly developed nations.