The long-run aggregate supply increases as:
a. new production technology is introduced.
b. the quality of labor declines.
c. the average price level increases.
d. natural resources become depleted.
e. the minimum wage rate increases.
Question 2
The fallacy of composition is essentially the error of:
a. confusing association with causation.
b. confusing normative economics with positive economics.
c. generalizing from the individual to the whole.
d. omitting relevant variables from an economic model.
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