The Figure Given Below Depicts Long Run Equilibrium in an Aggregate

question 7

Multiple Choice

The figure given below depicts long run equilibrium in an aggregate demand-aggregate supply model. Which of these could have caused the movement shown in this figure?

• A) A decrease in the size of the labor force
• B) An increase in the price level
• C) An increase in net investment
• D) An increase in autonomous consumption
• E) A decrease in autonomous consumption

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Definitions:

Withdrawal Symptoms

The physical or psychological effects experienced when reducing or ceasing intake of a substance on which the body has become dependent.

Heavy Drinking

Consumption of alcoholic beverages in large amounts over a short period of time, often leading to health problems and social issues.

Adverse Effect

An Adverse Effect is an undesired, harmful outcome resulting from a medication or other intervention.

Moderate Drinking

Consumption of alcoholic beverages in a manner that is within recommended guidelines and limits, aiming to reduce health risks.