Figure 10-4 -Refer to Figure 10-4. What Happens in the Product Market

question 148

Multiple Choice

Figure 10-4
-Refer to Figure 10-4. What happens in the product market as a result of the increase in money demand?

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

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Definitions:

Severe Recession

An extended period of significant decline in economic activity across the economy, lasting more than a few months, characterized by high unemployment, low consumer spending, and decreased industrial production.

Depression

An extended period of significant decline in economic activity across a country or the global economy, marked by high unemployment rates, low consumer spending, and decreased industrial output.

Unemployment Rate

The portion of the workforce currently unemployed but actively searching for work opportunities.

Opportunity Cost

The foregone benefit of the next best alternative when a decision is made to choose one option over another.