The Graph Shown Displays Various Economic Outcomes

question 58

Multiple Choice

The graph shown displays various economic outcomes. If the economy is currently at equilibrium D, and the government does nothing, then eventually:

• A) SRAS will shift to the right, and the economy will have Y ₃ output with lower prices.
• B) SRAS will shift to the left, and the economy will have Y ₃ output at higher prices.
• C) LRAS will shift to the left until equilibrium is reached.
• D) AD will shift to the right, restoring long-run equilibrium.

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Definitions:

Situational Influences

Factors present in a specific situation that can affect consumers' purchasing behavior, including physical environment, social environment, and time.

Complexity

relates to the state or quality of being intricate, detailed, or complicated in structure or process.

Social Influences

the effects that the words, actions, or presence of other people have on an individual's attitudes, beliefs, values, or behaviors.