Use the Following to Answer Questions

question 52

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 the stock market crashes, significantly reducing household wealth. As a result,

• A) the economy's potential output decreases to Y₃.
• B) unemployment is below its natural rate.
• C) the economy moves to a new long-run equilibrium at point C.
• D) there is some cyclical unemployment.

---

Definitions:

Transmission Control System

A system in vehicles that uses electronic sensors, processors, and actuators to control gear shifts and optimize engine performance.

Single ECU

Refers to a vehicle having one Electronic Control Unit responsible for overseeing and managing the engine's performance and other systems.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenue.