Refer to the Diagram

question 23

Multiple Choice

Refer to the diagram. Rational expectations theory says that a fully anticipated decrease in aggregate demand from AD₂ to AD₁ will

• A) move the economy from a to b to c.
• B) shift the AS curve to the left.
• C) move the economy from c to a new equilibrium at b.
• D) move the economy directly from c to a.

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Definitions:

Pancreatic Duct Cancer

A malignant tumor located in the ducts that carry digestive enzymes from the pancreas to the small intestine.

Patient

An individual receiving medical treatment or evaluation.

Intraductal Carcinoma

A type of breast cancer that starts in the milk ducts and has not invaded nearby tissue, also often referred to as ductal carcinoma in situ (DCIS).

Breast

A tissue overlying the chest muscles in humans and other mammals, containing mammary glands which produce milk to feed infants.