Assume the Economy Is Initially in Equilibrium on AD₂ and AS₂.Which

question 65

Multiple Choice

Assume the economy is initially in equilibrium on AD₂ and AS₂.Which curve would have shifted,and in what direction would it have shifted,if a new equilibrium were to occur at an output level of $300 billion and a price level of P₃ in Figure 8.3?

• A)Aggregate supply would have shifted to the left.
• B)Aggregate supply would have shifted to the right.
• C)Aggregate demand would have shifted to the left.
• D)Aggregate demand would have shifted to the right.

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Definitions:

Recognition Memory

The ability to recognize previously encountered events, objects, or people.

Recall Memory

A type of long-term memory that involves the ability to access information without being cued, requiring one to actively retrieve and reconstruct information.

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Thoughts or assumptions that are not based on reality or rational thinking, often leading to negative emotional responses.

Treatment Failure

The occurrence when a medical treatment does not achieve the intended outcomes, leading to no improvement or worsening of a condition.