How Does an Economic Contraction That Is Caused by a Shift

question 95

Multiple Choice

How does an economic contraction that is caused by a shift in aggregate demand remedy itself over time?

• A) The expected price level rises, shifting aggregate demand right.
• B) The expected price level rises, shifting aggregate demand left.
• C) The expected price level falls, shifting aggregate supply right.
• D) The expected price level falls, shifting aggregate supply left.

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Definitions:

Submarine Sandwiches

A type of sandwich consisting of a long roll of bread filled with meats, cheese, vegetables, and condiments, also known as a sub, hoagie, hero, or grinder.

Pizzas

A popular dish of Italian origin consisting of a flat round base of dough baked with a topping of tomato sauce and cheese, typically with added meat, fish, or vegetables.

Black Beans

A type of legume that is widely consumed around the world, known for its nutritional value and versatility in various cuisines.

Bell Peppers

Edible fruits from the Capsicum genus, commonly used in cooking for their sweet and mild flavor.