The Figure Below Shows the Short-Run Aggregate Demand and Supply

question 53

Multiple Choice

The figure below shows the short-run aggregate demand and supply curves of an economy.If the economy is currently producing at Y2,long-run equilibrium will most likely be established by a(n) :

• A)increase in short-run aggregate supply.
• B)decrease in short-run aggregate supply.
• C)decrease in potential output.
• D)increase in potential output.
• E)rightward shift of the aggregate demand curve.

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Definitions:

Somatic Symptom

Physical symptoms that are experienced and distressing to an individual but cannot be fully explained by a medical condition, often associated with emotional distress.

Posttraumatic Stress

A psychological condition resulting from exposure to traumatic events, characterized by persistent distressing memories, heightened stress responses, and avoidance of trauma-related stimuli.

Emotional Well-Being

A state of mental health where an individual is able to understand and manage their emotions effectively, leading to positive self-esteem and relationships.

Illness Anxiety

A condition, previously known as hypochondriasis, where an individual excessively worries about having a serious illness despite medical reassurance.