-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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Insured

A person or entity covered under an insurance policy, providing protection against specified risks or losses.

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Income subject to tax, after deductions and exemptions, according to federal or state law.

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Payments made to a spouse or former spouse under a divorce or separation agreement, possibly subject to special tax treatment.

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