Refer to the Graph $A D _ { 1 } \text { shifts to } A D _ { 2 } \text {, }$

question 244

Multiple Choice

Refer to the graph. Assume that the economy is initially at equilibrium at point A. If there is a recession in the economy because AD
$A D _ { 1 } \text { shifts to } A D _ { 2 } \text {, }$ , and wages and prices are ?exible, then in the
Long run the price level will be

• A) \(P _ { 2 } \text { and real output will be } Q _ { f } \text {. }\)
• B) \(P _ { 3 } \text { and real output will be } Q _ { f } \text {. }\)
• C) \(P _ { 1 } \text { and real output will be } Q _ { f } \text {. }\)
• D) P2 and real output will be Q1.

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Definitions:

Continuum

A continuous sequence in which adjacent elements are not perceptibly different from each other, but the extremes are quite distinct.

Big Five Traits

A model that categorizes human personality into five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Anxious

Feeling anxious or apprehensive, typically regarding a forthcoming event or a situation with an unknown result.

Neuroticism

A personality trait characterized by a tendency to experience negative emotions such as anxiety, anger, or depression more frequently and intensely than others.