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Suppose a Developing Country Receives More Machinery and Capital Equipment

Question 58

Multiple Choice

Suppose a developing country receives more machinery and capital equipment as foreign entrepreneurs increase the amount of investment in the economy. As a result, the:


A) long-run aggregate supply curve will shift to the right.
B) long-run aggregate supply curve will shift to the left.
C) economy will move up along the long-run aggregate supply curve.
D) economy will move down along the long-run aggregate supply curve.

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