Refer to the Graph Shown

question 130

Multiple Choice

Refer to the graph shown.If the price level is P₀ the:

• A)short-run aggregate supply curve will shift up (to the left) in the long run to restore equilibrium.
• B)short-run aggregate supply curve will shift down (to the right) in the long run to restore equilibrium.
• C)aggregate demand curve will shift up in the long run to restore equilibrium.
• D)aggregate demand curve will shift down in the long run to restore equilibrium.

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Definitions:

Mutually Beneficial Trade

A trade agreement between parties that provides gains or advantages to all involved parties.

Tariff

a tax imposed on imported goods and services, intended to make foreign commodities less price-competitive than domestic goods.

Imports

Imports are goods and services bought by residents of a country from another country, which results in an outflow of currency to foreign markets.

Domestic Consumers

Individuals or entities within a country that purchase goods and services for personal use.