For the Following Question(s),assume That the Economy Is in Long-Run

question 29

Multiple Choice

For the following question(s) ,assume that the economy is in long-run equilibrium in the aggregate demand/aggregate supply model and that some sort of event takes place.In each case,mark the most likely impact of the event on the aggregate demand/aggregate supply diagram given below.
Figure 10-19

-Refer to Figure 10-19.Consumers and businesses all suddenly decide that the future looks much better than it previously had.

• A)The aggregate demand curve would shift to the right.
• B)The aggregate demand curve would shift to the left.
• C)The short-run aggregate supply curve would shift to the right.
• D)The short-run aggregate supply curve would shift to the left.

Identify the conditions under which a country becomes an importer or exporter of a specific good.

Understand the mechanisms through which world supply and demand determine world prices.

Analyze the impact of trade restrictions like tariffs and quotas on consumer surplus, producer surplus, and government revenue.

Explain the reasons for and against international specialization.

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Definitions:

Peptide Hormones

Biomolecules that act as signaling molecules in the body, composed of short chains of amino acids.

Amino Acids

Organic compounds that combine to form proteins, serving as building blocks for life.

Receptors

Specialized cells or proteins on cell surfaces or within cells that bind to specific substances, triggering a cellular response.

Exophthalmos

Bulging of the eyeballs, often related to hyperthyroidism.