Suppose a Shift in Aggregate Demand Creates an Economic Contraction

question 91

Multiple Choice

Suppose a shift in aggregate demand creates an economic contraction.If policymakers can respond with sufficient speed and precision,they can offset the initial shift by shifting

• A)aggregate supply right.
• B)aggregate supply left.
• C)aggregate demand right.
• D)aggregate demand left.

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Definitions:

Political Revolution

A fundamental and sudden change in political power or organizational structures that occurs when the population revolts against current authorities, leading to a radical shift in government or policies.

Traditional Authority

A type of leadership in which the legitimacy of the authority comes from tradition or custom, with power passed down through generations.

Louis XIV

A monarch of the House of Bourbon who reigned as King of France from 1643 until his death in 1715, known for his absolute monarchy and the phrase "L'état, c'est moi."

Tribal Societies

Groups of people organized around kinship or other forms of obligation and identified by cultural and social unity, often living in traditional, pre-industrial societies.