Suppose a developing country receives more machinery and capital equipment as foreign entrepreneurs increase 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.
C
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The principal distinction between positive analysis and normative analysis is that
A) positive analysis is useful and normative analysis is not useful. B) positive analysis is optimistic and normative analysis is neutral. C) economists always agree on the conclusions of positive analysis but could disagree on the conclusions of normative analysis. D) positive analysis tells us "what is," but normative analysis tells us "what ought to be."
In the simple Keynesian model, equilibrium aggregate output is determined by
A) aggregate demand. B) aggregate supply. C) the national demand for labor. D) the price level.