Figure 11-4

question 77

Multiple Choice

Figure 11-4
-Refer to Figure 11-4. If a nonintervention policy were adopted in Panel (a) ,

• A) the aggregate demand curve would have eventually shifted as shown.
• B) the short-run aggregate supply curve would have eventually shifted to the left and restored full employment.
• C) the short-run aggregate supply curve would have eventually shifted to the right and restored full employment.
• D) both the aggregate demand curve and the short-run aggregate supply curve would have eventually shifted to the left.

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Definitions:

Voluntary Chapter 7

A legal process initiated by an individual or business to declare bankruptcy, allowing for the liquidation of assets to pay off debts.

Exemption

A provision that allows an individual or entity to be excused from a usual requirement or rule.

Insolvent Debtors

Individuals or entities that are unable to meet their financial obligations or repay their debts.

Debts

Money owed by one party to another under an agreement to repay borrowed funds or obtained resources.