Consider the Basic AD/AS Macro Model, Initially in a Long

question 129

Multiple Choice

Consider the basic AD/AS macro model, initially in a long -run equilibrium. A positive AS shock will
The price level and output in the short run. In the long run, the price level will and output
)

• A) decrease; decrease; decrease further; will decrease further
• B) decrease; increase; decrease further; will be restored to potential output
• C) decrease; increase; return to its initial level; will be restored to potential output
• D) increase; increase; decrease; will be restored to potential output
• E) increase; increase; return to its initial level; will be restored to potential output

---

Definitions:

Persuasive

Capable of convincing someone to do or believe something through reasoning or the use of emotional appeals.

Comparative Ads

Advertising strategies that highlight the advantages of one product over its competitors.

Digital Camera

An electronic device that captures and stores photographs digitally, often equipped with various technological features.

Two-Sided Argument

A persuasive strategy that presents both the pros and cons of an argument to build credibility and counteract opposing views.