Suppose That During the Great Depression Long-Run Aggregate Supply Shifted

question 12

Multiple Choice

Suppose that during the Great Depression long-run aggregate supply shifted left.To be consistent with what happened to the price level and output,what would have had to happen to aggregate demand?

• A)It would have to have shifted left by less than aggregate supply.
• B)It would have to have shifted left by more than aggregate supply.
• C)It would have to have shifted right by less than aggregate supply.
• D)It would have to have shifted right by more than aggregate supply.

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Definitions:

Cortisol

A steroid hormone produced by the adrenal glands, often referred to as the "stress hormone" due to its role in the body's stress response.

Fight-Or-Flight Responses

A physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival.

Patellar Reflexes

A knee-jerk response triggered by tapping the patellar tendon, used to assess the nervous system.

Tendon Reflexes

Involuntary responses to stimulus, such as hammer taps, on a tendon designed to assess the neural circuits among muscle and spinal cord.