Refer to the Graph

question 231

Multiple Choice

Refer to the graph. Assume that the economy was initially in equilibrium at point A. If there is a significant technological innovation in the economy, then according to real-business-cycle theory,
Aggregate

• A) demand will shift, which constitutes the full extent of the volatility.
• B) demand will shift, which causes a corresponding shift in aggregate supply.
• C) supply will shift, which causes a corresponding shift in aggregate demand.
• D) supply will shift, but such shifts are very rare in the real economy.

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Definitions:

Researchers

Individuals who conduct systematic investigations and studies to establish facts and reach new conclusions in various fields of knowledge.

Vector

In biology, an organism or vehicle that transmits genetic material from one host to another; in mathematics, a quantity represented by both magnitude and direction.

Fragment

A small part broken off or separated from something, often referring to pieces of rock, texts, or digital data.

Automated DNA Sequencing

A high-throughput method for determining the order of nucleotides in DNA, using automated equipment to accelerate the sequencing process.