The Diagram Below Shows an AD/AS Model for a Hypothetical

question 82

Multiple Choice

The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A. FIGURE 24-3 Refer to Figure 24-3.Which of the following events could have shifted the AD curve from to ?

• A)an increase in net exports
• B)an increase in government purchases
• C)an increase in desired investment
• D)an increase in autonomous household saving
• E)an increase in autonomous consumption

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Definitions:

Subsidized Coverage

Financial assistance provided by government or organizations to help individuals afford health insurance or other forms of necessary insurance.

Penalized

Subjected to a penalty or punishment for an offense or infringement of rules.

Market-based Transactions

Economic activities that occur in a free market, where goods or services are exchanged between buyers and sellers based on demand and supply.

Avik Roy

He is a journalist and policy analyst known for his work on healthcare policy, particularly in the context of reform and market-based solutions.