Exhibit 10.2 -Refer to Exhibit 10.2, Which Shows the Short-Run Aggregate Supply

question 151

Multiple Choice

Exhibit 10.2

-Refer to Exhibit 10.2, which shows the short-run aggregate supply curve of an economy. If the economy is currently producing at Y₂, long-run equilibrium will most likely be established by a(n) _____

• A) increase in short-run aggregate supply.
• B) decrease in short-run aggregate supply.
• C) decrease in potential output.
• D) increase in potential output.
• E) rightward shift of the aggregate demand curve.

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Definitions:

Intensively Sold

A marketing strategy that aims for widespread distribution and makes the product available at as many retail locations as possible.

Stock Prices

The cost of purchasing a share of a company, which fluctuates based on supply and demand, company performance, and market conditions.

Insiders

Individuals within a corporation who have access to confidential information about the company, often subject to trading restrictions.

Support Level

A price level below which it is supposedly difficult for a stock or stock index to fall.