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

question 102

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 Pessimism.In the long run,the change in price expectations created by pessimism 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.

---

Definitions:

Lumen

The internal area of a hollow organ, like a blood vessel or the gut.

Vestibule

An entrance hall or other open area in a building used by the public, especially a hotel or theater; in anatomy, it refers to the entrance of many structures in the body such as the mouth or ear.

Labia Minora

The inner folds of skin located at the entrance of the female genitalia, playing a role in protecting the vaginal and urethral openings.

Urethra

The duct through which urine is discharged from the bladder in both sexes and through which semen is discharged in males.