Figure 12.2 -Consider the Economy Described in Figure 12.2. Assume That Equilibrium

question 24

Multiple Choice

Figure 12.2

-Consider the economy described in Figure 12.2. Assume that equilibrium is at point A. Given AD₁, a rightward shift of the aggregate supply curve would cause

• A) unemployment to rise.
• B) the price level to rise.
• C) the equilibrium income level to fall.
• D) business production to fall.
• E) real GDP to rise.

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Definitions:

Disadvantage

A circumstance or condition that unfavorably affects someone, reducing their chances of success.

Own Ability

An individual's self-assessed competence or skill in a particular area.

Self-Serving Biases

Cognitive biases that lead to perceiving oneself in a favorable manner, often by attributing success to internal factors and failures to external factors.

Attributions

Explanations one gives for the causes of events, behaviors, and outcomes, often as internal (personal) or external (situational) factors.