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A) Self-Correct Through a Shift in AS, Which Brings Output Q1.\mathrm { Q } _ { 1 } .

question 60

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   A)  self-correct through a shift in AS, which brings output back to Q  \mathrm { Q } _ { 1 } .  B)  self-correct through a shift in AD, which brings output back to Q  \mathrm { Q } _ { 1 } .  C)  need the government to implement expansionary policy in order to bring output back to  Q _ { 1 } .  D)  need the government to implement contractionary policy in order to bring output back to  \mathrm { Q } _ { 1 } \text {. }

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Definitions:

Supply Curve

A graph showing the relationship between the price of a good and the amount of the good that suppliers are willing to sell.

Marginal Cost Curve

A graphical representation showing how the cost of producing one more unit of a good varies with the level of output.

Average Revenue

Total revenue from the sale of a product divided by the quantity of the product sold (demanded); equal to the price at which the product is sold when all units of the product are sold at the same price.

Average Cost

is the cost per unit of output, calculated by dividing total costs by the total quantity of output produced.

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