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As Shown in Exhibit 1, the Economy's Point of Short-Run

question 77

Multiple Choice

As shown in Exhibit 1, the economy's point of short-run equilibrium, given by the shift of the aggregate demand curve from AD1 to AD2 , is:


Definitions:

Groupthink

A mode of thinking in highly cohesive groups in which the desire to reach unanimous agreement overrides the motivation to adopt proper rational decision-making procedures.

Unanimity

Complete agreement among all members or parties involved on a particular issue or decision.

Rational

Based on or in accordance with reason or logic; capable of making sensible or logical decisions.

Antecedent

A preceding event, condition, or cause that logically goes before something else.

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