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The Figure Given Below Depicts Long Run Equilibrium in an Aggregate

question 99

Multiple Choice

The figure given below depicts long run equilibrium in an aggregate demand-aggregate supply model. The change in real GDP in this figure from Y1 to Y2 could have been caused by:
The figure given below depicts long run equilibrium in an aggregate demand-aggregate supply model. The change in real GDP in this figure from Y<sub>1</sub> to Y<sub>2</sub> could have been caused by:   A)  a government policy aimed at increasing demand. B)  a change in weather conditions that led to worldwide crop failures. C)  an attempt by key resource producers to monopolize supply. D)  an increase in taxation or a decrease in government spending. E)  an increase in labor productivity.


Definitions:

Antioxidants

Substances that inhibit oxidation, protecting cells against free radicals.

Glycolysis

The metabolic pathway in the cytoplasm where glucose is broken down to pyruvate, generating ATP and NADH.

Phosphoglyceraldehyde (PGAL)

A three-carbon sugar molecule that serves as an intermediate in several central metabolic pathways, importantly in photosynthesis and glycolysis.

Glucose

A simple sugar that is an important energy source in living organisms and is a component of many carbohydrates.

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