Any permanent change in the quantity of any factor of production available capital, technology, land, or labor can cause a shift in both the long-run and short-run aggregate supply curves.
a. True
b. False
Indicate whether the statement is true or false
Question 2
A trade deficit occurs when:
a. a country imposes a price floor on the good in which it has a comparative advantage.
b. a country's imports exceed its exports.
c. a country imposes a price ceiling on the good in which it has a comparative advantage.
d. a country's exports exceed its imports.
e. the domestic product market is in disequilibrium.
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Identify the variable representing each described quantity in the equation