Exhibit 10.1 -Refer to Exhibit 10.1, Which Shows the Short-Run Aggregate Supply

question 146

Multiple Choice

Exhibit 10.1

-Refer to Exhibit 10.1, which shows the short-run aggregate supply (SRAS) curve of an economy. What happens to short run aggregate supply if prices are lower than expected?

• A) SRAS shifts right.
• B) SRAS shifts left.
• C) There is an upward movement along SRAS to Y₃.
• D) There is a downward movement along SRAS to Y₂.
• E) Nothing happens in the short run.

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Definitions:

Somatotropin

Also known as growth hormone (GH), it is a peptide hormone that stimulates growth, cell reproduction, and cell regeneration in humans and other animals.

Hypersecretion

The excessive production and release of a substance by a gland.

Cortisol

A steroid hormone produced by the adrenal glands, often released in response to stress and a key component in regulating metabolism, immune response, and inflammation.

Cushing Disease

A condition caused by excess cortisol in the body, often due to a pituitary gland tumor.