Refer to the Diagram $\mathrm { AS } _ { 2 } \text { to } \mathrm { AS } _ { 1 }$

question 36

Multiple Choice

Refer to the diagram. The initial aggregate demand curve is AD₁, and the initial aggregate supply curve is AS₁. Assuming no change in aggregate demand, the long-run response to a recession caused by cost-push inflation is best depicted as a

• A) move from a to d along the long-run aggregate supply curve.
• B) rightward shift of the aggregate supply curve from A \(\mathrm { AS } _ { 2 } \text { to } \mathrm { AS } _ { 1 }\)
• C) move from a to c to d.
• D) leftward shift of the aggregate supply curve from A \(\mathrm { AS } _ { 1 } \text { to } \mathrm { AS } _ { 2 }\)

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Definitions:

Food Web

A network of interlinked food chains in an ecosystem, showing how each organism is food for the next level.

Complex Feeding

Refers to the intricate interactions and food webs in ecosystems, involving multiple levels of producers, consumers, and decomposers.

Biological Diversity

The variety and variability of life on Earth, including diversity within species, between species, and of ecosystems.

Biodegradable

Materials that can be broken down into natural elements by microorganisms over time, without harming the environment.