When $\vec { C }$ falls, the LRAS curve:
A) shifts to the right.
B) shifts to the left.
C) becomes flatter.
D) does not move.

Name: When $\vec { C }$ falls, the LRAS curve: A) shifts to the right. B) shifts to the left. C) becomes flatter. D) does not move.
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Question

Quizplus · Accepted Answer

The LRAS curve represents the long-run aggregate supply, which is determined by factors like technology and resources, not by changes in consumption ($\vec { C }$). Therefore, a fall in consumption does not shift the LRAS curve.

When C⃗\vec { C }C Falls, the LRAS Curve: A) Shifts to the Right

When $\vec { C }$ Falls, the LRAS Curve:
A) Shifts to the Right