Leftward Shifts in the Aggregate Supply Curve Are Expected to

question 54

Multiple Choice

Leftward shifts in the aggregate supply curve are expected to

• A) reduce real output and raise unemployment.
• B) increase real output but raise the price level.
• C) increase the price level unless the money supply is allowed to increase to bring down prices.
• D) leave output and employment unchanged when the aggregate demand curve intersects the aggregate supply curve's vertical range.
• E) reduce output but leave the price level unchanged if the economy is at full employment.

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Definitions:

Depressed

Experiencing persistent sadness, low mood, and a lack of interest or pleasure in normally enjoyable activities.

Helpless

A state or feeling of having no power or control over a situation or oneself.

Associative-Link

A cognitive connection between two ideas, concepts, or events, formed through the process of learning or experience.

Contiguity

The temporal pairing of two events