Refer to the Information Provided in Figure 27

question 128

Multiple Choice

Refer to the information provided in Figure 27.3 below to answer the question(s) that follow. Figure 27.3
-Refer to Figure 27.3. Assume the economy is currently at Point A on aggregate supply curve AS₁. A decrease in inflationary expectations that causes firms to decrease their prices

• A) shifts the aggregate supply curve to AS₀.
• B) shifts the aggregate supply curve to AS₂.
• C) moves the economy to Point C on aggregate supply curve AS₁.
• D) moves the economy to Point B on aggregate supply curve AS₁.

---

Definitions:

Somites

Blocks of mesodermal cells located on either side of the neural tube in the developing embryo, which will differentiate into the vertebrae, rib cage, and associated musculature.

Muscles

Tissues composed of fibers capable of contracting to produce movement or maintain the position of parts of the body.

Glands

Organs or tissues in the body that secrete hormones, enzymes, or other substances to fulfill specific physiological processes.

Frontonasal

Pertaining to both the forehead and nose.