Pessimism Suppose the Economy Is in Long-Run Equilibrium. Then Because of of Corporate

question 2

Multiple Choice

Pessimism
Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time.


-Refer to Optimism.In the long run,the change in price expectations created by optimism shifts

• A)long-run aggregate supply right.
• B)long-run aggregate supply left.
• C)short-run aggregate supply right.
• D)short-run aggregate supply left.

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Definitions:

Restroom

A public facility containing toilets and sinks for use by the general public or customers.

Ego

According to Freud, the psychological force that employs reason and operates in accordance with the reality principle.

Fixation

In psychoanalytic theory, an obsessive focus or attachment to a stage of development, object, or person.

Defense Mechanism

Psychological strategies brought into play by individuals to protect themselves from unacceptable thoughts or feelings.