Figure 12-2 -Refer to Figure 12-2. Assume That the Economy Is Initially

question 13

Multiple Choice

Figure 12-2
-Refer to Figure 12-2. Assume that the economy is initially at Y_r. A nonintervention policy
Would return the economy to its potential output by

• A) allowing the short-run aggregate supply to shift to the right.
• B) allowing the short-run aggregate supply to shift to the left.
• C) allowing the aggregate demand to shift to the left.
• D) allowing the aggregate demand to shift to the right.

---

Definitions:

Parasite

An organism that lives on or in another organism and relies on it for nourishment or some other advantage to the detriment of the host organism.

Viruses

Microscopic infectious agents that can replicate only inside the living cells of an organism and are capable of causing diseases.

Chickenpox

A highly contagious viral infection characterized by an itchy rash and red spots or blisters all over the body.

Hepatitis

Inflammation of the liver usually caused by viruses or toxins.