Scenario 14-1 The Economy Is in Long-Run Equilibrium. Suddenly, Due to Improved

question 143

Multiple Choice

Scenario 14-1
The economy is in long-run equilibrium. Suddenly, due to improved international relations, a boom experienced by a major trading partner, and the increased confidence of policymakers, citizens become more optimistic about the future and stay this way for a long time.
-Refer to the Scenario 14-1. Initially, which curve shifts in which direction?

• A) AD shifts right.
• B) AD shifts left.
• C) Short-run AS shifts right.
• D) Short-run AS shifts left.

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Definitions:

Communications

The exchange of information between parties, which can be verbal, written, or through other media, and is crucial in all professional and personal interactions.

Electronic Communications

The transfer of information using electronic means such as emails, texts, and social media.

Confidential

Information meant to be kept private or secret, shared only between individuals with permission to access it.

Opposing Party

The other side in a legal dispute or litigation.