In the Figure Above, the Economy Is at an Equilibrium

question 221

Multiple Choice

In the figure above, the economy is at an equilibrium with real GDP of $10 trillion and a price level of 110. As the economy moves toward its ultimate equilibrium, the ________ curve will shift ________.

• A)aggregate supply; leftward
• B)aggregate supply; rightward
• C)aggregate demand; rightward
• D)aggregate demand; leftward
• E)potential GDP; rightward

---

Definitions:

Power Inequalities

Disparities in control, authority, or influence among individuals or groups within a society or organization.

Uncertainty Avoidance Cultures

Societies that have a low tolerance for ambiguity and uncertainty, often relying on strict rules and procedures to manage situations.

Long-Term Employment

A work arrangement where an employee is engaged with an organization for an extended period, often leading to greater job security and benefits.

Short-Term Orientation

A perspective or approach that focuses on achieving immediate results rather than long-term goals.