Beginning from a Point of Short-Run Equilibrium at Point E₂

question 69

Multiple Choice

Beginning from a point of short-run equilibrium at point E₂ in Exhibit 6, the economy's movement to a new position of long-run equilibrium from that point would best be described as:

• A)a movement along the AD₂ curve caused by a shift in the SRAS₁ curve to SRAS₂.
• B)a movement along the SRAS₂ curve with a shift in the AD₂ curve.
• C)a shift in the LRAS curve to an intersection at E₃.
• D)no shift of any kind.

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Definitions:

Unwanted Behaviors

Actions or reactions that are undesirable or inappropriate according to societal standards or personal values.

Catastrophizing

A cognitive distortion where an individual imagines the worst possible outcome of a situation, often leading to increased anxiety and stress.

Aversive Conditioning

A method of behavior modification that involves using unpleasant stimuli to discourage undesirable behaviors.

Transference

In psychoanalysis, the redirection of feelings and desires, especially those unconsciously retained from childhood, onto a new object or person, typically a therapist.