Suppose a Shift in Aggregate Demand Creates an Economic Contraction

question 177

Multiple Choice

Suppose a shift in aggregate demand creates an economic contraction. If policymakers can respond with sufficient speed and precision, how can they offset the initial shift?

• A) by shifting the aggregate supply right
• B) by shifting the aggregate supply left
• C) by shifting the aggregate demand right
• D) by shifting the aggregate demand left

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Definitions:

Negotiated Level

A mutually agreed upon standard or condition that is arrived at after discussion between parties involved.

Conflict Management

The practice of identifying and handling conflicts in a wise, fair, and efficient manner, focusing on effective communication and negotiation strategies to achieve resolutions.

Assertive

Relating to a behavior characterized by confidence and self-assurance in expressing one's opinions and needs directly and respectfully, without being aggressive or passive.