Use the Following to Answer Questions

question 191

Multiple Choice

Use the following to answer questions:
Figure: Policy Alternatives
-(Figure: Policy Alternatives) Refer to Figure: Policy Alternatives. If the economy is in equilibrium at Y₁ in panel (a) and the government does not intervene, the result will likely be:

• A) a shift of AD₁ to the left.
• B) a shift of SRAS₁ to SRAS₂.
• C) a shift of LRAS to the left.
• D) no change in AD or SRAS.

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Definitions:

Cash Receipts

The collection of money, typically currency or checks, received by a business for goods or services.

Sales Forecast

An estimate of the expected sales of a product or service over a specific period, based on market research and historical sales data.