-In the Figure Above, the Shift of the Aggregate Supply

question 2

Multiple Choice

-In the figure above, the shift of the aggregate supply curve from AS₁ to AS₂ and the following shift back to AS₁ is called ________.

• A) a self-correcting mechanism
• B) a self-fulfilling prophecy
• C) a self-adjusting mechanism
• D) a long-run correcting mechanism

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Definitions:

Initiative

A project or action intended to solve a problem or improve a situation; a fresh approach to something.

Integrity

The quality of being honest and having strong moral principles; moral uprightness.

Sense of Identity

An individual's perception of themselves, their traits, beliefs, and personality.

Basic Trust

A fundamental sense of trust in one's environment and others, considered to be an essential aspect of psychological development in the early years of life.