A) Decrease in Aggregate Supply

question 35

Multiple Choice

• A) decrease in aggregate supply.
• B) decrease in the amount of output supplied.
• C) increase in investment spending.
• D) decrease in net export spending.

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Definitions:

Economically Efficient

Refers to a situation where resources are allocated in the most effective way, maximizing production while minimizing waste and inefficiency.

Dollar Voting

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Competitive Markets

Markets characterized by many buyers and sellers where no single participant has significant influence over market prices.

Median-Voter Model

A theoretical model in political science suggesting that the outcome of a majority-vote election is most likely to represent the preferences of the median voter.