Suppose the Economy Is Initially in Long-Run Equilibrium and Then

question 19

Multiple Choice

Suppose the economy is initially in long-run equilibrium and then it experiences a supply shock in the form of sharply higher energy prices. Which of the following is true?

• A) The short-run aggregate supply curve shifts leftward and the long-run supply curve shifts rightward.
• B) The short-run aggregate supply curve shifts rightward and there is a movement along the aggregate demand curve.
• C) The short-run aggregate supply curve does not shift and the long-run aggregate supply curve shifts rightward.
• D) The short-run aggregate supply curve shifts rightward but the long-run aggregate supply curve does not shift.
• E) The short-run aggregate supply curve shifts leftward and there is a movement along the aggregate demand curve.

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Definitions:

Holistic Practitioners

Healthcare providers who treat patients by considering the complete physical, mental, social, and spiritual aspects of their wellbeing.

Scientific Medicine

involves the application of scientific methods and principles to the prevention, diagnosis, and treatment of diseases.

Placebo Effect

A beneficial health outcome resulting from a person's expectations of a treatment rather than the treatment itself.

Health Care System

A comprehensive organization of institutions, resources, and personnel intended to deliver health care services to meet the health needs of target populations.