10-8. Assume that the position of a nation's aggregate demand curve hasnot changed, but the long-run equilibrium price level has declined. Otherthings being equal, which of the following factors might account for thisevent?a. An increase in labor productivityb. A decrease in the capital stockc. A decrease in the quantity of money in circulationd. The discovery of new mineral resources used to produce variousgoodse. A technological improvement

Aggregate demand represents the total demand for all finished goods and services produced in an…

10-8. Assume that the position of a nation's aggregate demand curve has not changed, but the long-run equilibrium price level has declined. Other things being equal, which of the following factors might account for this event?

10-8. Assume that the position of a nation's aggregate demand curve has not changed, but the long-run equilibrium price level has declined. Other things being equal, which of the following factors might account for this event?

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter33: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 4CQQ

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Question

10-8. Assume that the position of a nation's aggregate demand curve has
not changed, but the long-run equilibrium price level has declined. Other
things being equal, which of the following factors might account for this
event?
a. An increase in labor productivity
b. A decrease in the capital stock
c. A decrease in the quantity of money in circulation
d. The discovery of new mineral resources used to produce various
goods
e. A technological improvement

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