-From the Data in the Above Table, When the Economy

question 177

Multiple Choice

$$\begin{array} { | l | l | l | l | } \hline \begin{array} { l } \text { Price } \\\text { level }\end{array} & \begin{array} { l } \text { A ggregate } \\\text { demand } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Short-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Long-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} \\\hline 140 & 9.0 & 11.5 & 10.0 \\\hline 130 & 9.5 & 11.0 & 10.0 \\\hline 120 & 10.0 & 10.5 & 10.0 \\\hline 110 & 105 & 10.0 & 10.0 \\\hline 100 & 11.0 & 9.5 & 10.0 \\\hline\end{array}$$
-From the data in the above table, when the economy is at its short -run equilibrium, if aggregate demand does not change, then as time passes the

• A) long-run aggregate supply curve shifts rightward.
• B) short-run aggregate supply curve shifts rightward.
• C) long-run aggregate supply curve shifts leftward.
• D) short-run aggregate supply curve shifts leftward.

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Definitions:

Contractility

The capability of muscular or other tissue to contract or shorten, causing movement or the exertion of force.

Extensibility

The capability of being stretched or extended.

Excitability

The ability of a cell or organism to respond to environmental stimuli by changing its bioelectric state.

Elasticity

The capacity of a material or body to return to its original shape after being stretched or compressed.