Exhibit 17-3 Aggregate Demand and Aggregate Supply Curves as Shown

question 96

Multiple Choice

Exhibit 17-3 Aggregate demand and aggregate supply curves As shown in Exhibit 17-3, if people behave according to adaptive expectations theory, an increase in the aggregate demand curve from AD₁ to AD₂ will cause the economy to move:

• A)from E₁ to E₂ initially and then eventually move back to E₁.
• B)directly from E₁ to E₂ and then remain at E₂.
• C)directly from E₁ to E₃ and then remain at E₃.
• D)from E₁ to E₂ initially and then eventually move to E₃.

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Definitions:

DC Motor

A type of electric motor that runs on direct current electricity, used in a wide variety of applications from vehicles to industrial machinery.

Shunt Motor

A motor that contains only a shunt field winding.

Square Wave Voltage

An electrical signal that switches instantaneously between two levels, used for digital communication, characterized by its distinct, non-variable high and low states.

DC Average

The average value of a direct current (DC) over a period of time, often used to describe power or signal levels.