Use the Following to Answer Questions

question 23

Multiple Choice

Use the following to answer questions .
Exhibit: Short-run Aggregate Supply
-(Exhibit: Short-run Aggregate Supply) Suppose that the economy is in long-run equilibrium at point A. Now suppose net exports increase. What happens in the long-run, all other things unchanged?

• A) The economy will return to its initial equilibrium at point A.
• B) Equilibrium will be re-established at point B with a higher potential output.
• C) Equilibrium will be re-established at point E at a higher price level.
• D) The aggregate demand curve will shift back to AD₁.

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Definitions:

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A phenomenon where the negative attitudes or behaviors of one member can spread and influence the entire group.

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A young person in the phase of adolescence who rejects established norms and seeks autonomy, often leading to conflict with authority.

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Activities or behaviors that go against social norms and can harm or lack consideration for the well-being of others.

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