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Refer to the Diagram Below

question 107

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Refer to the diagram below.The initial aggregate demand curve is AD1 and the initial aggregate supply curve is AS1.Assuming no change in aggregate demand, the long-run response to a recession caused by cost-push inflation is best depicted as a: Refer to the diagram below.The initial aggregate demand curve is AD<sub>1</sub> and the initial aggregate supply curve is AS<sub>1</sub>.Assuming no change in aggregate demand, the long-run response to a recession caused by cost-push inflation is best depicted as a:   A) move from a to d along the long-run aggregate supply curve. B) rightward shift of the aggregate supply curve from AS<sub>2</sub> to AS<sub>1</sub>. C) move from a to c to d. D) leftward shift of the aggregate supply curve from AS<sub>1</sub> to AS<sub>2</sub>.


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Respondent Behavior

Behavior that occurs as an automatic response to a certain specific stimulus.

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A process in which a consequence immediately follows a behavior, decreasing the likelihood that the behavior will be repeated.

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