Consider the AD/AS Model and Suppose the Economy Begins at Potential

question 60

Multiple Choice

Consider the AD/AS model and suppose the economy begins at potential output. The effect of a negative AS shock on real GDP will be reversed in the long run with a shift in .

• A)rightward; AS
• B)leftward; Y*
• C)leftward; AD
• D)rightward; AD
• E)leftward; AS

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Definitions:

Sporophyte

The diploid phase in the life cycle of plants and algae that produces spores.

Xylem

A type of vascular tissue in plants responsible for the transport of water and minerals from the roots to other parts of the plant.

Phloem

A type of vascular tissue in plants responsible for transporting sugar (photosynthate) from leaves to other parts of the plant.

Evolutionary History

The chronicle of lineage development, adaptation, and diversification of organisms over time.