Figure 12-1 -Refer to Figure 12-1. Assume That the Economy Is Initially

question 132

Multiple Choice

Figure 12-1
-Refer to Figure 12-1. Assume that the economy is initially at Y₁. A nonintervention policy
Would result in the restoration of potential output by allowing the

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

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Definitions:

Nutrient Cycling

The movement and exchange of organic and inorganic matter back into the production of living matter, recycling elements and nutrients through the biosphere.

Hydroelectricity

The production of electricity using the energy generated from flowing or falling water, typically through dams.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize nutrients from carbon dioxide and water, releasing oxygen as a byproduct.

Euphotic Zone

The layer of a body of water that is sufficiently lit by sunlight, allowing photosynthesis to occur.