-Refer to the Graph in the Exhibit

question 112

Multiple Choice

-Refer to the graph in the exhibit.In this situation, how would long-run equilibrium be established?  

• A) by a decrease of short-run aggregate supply in order to close the expansionary gap
• B) by an increase of short-run aggregate supply in order to close the expansionary gap
• C) by a decrease of short-run aggregate supply in order to close the contractionary gap
• D) by an increase of short-run aggregate supply in order to close the contractionary gap

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Definitions:

Ownership Interest

A portion or share in the ownership of assets, such as real estate or a company, affording the holder certain rights like income or control.

General Partners

Individuals or entities that participate in the management of a partnership and have unlimited personal liability for the debts and obligations of the partnership.

Limited Partners

Individuals in a partnership who have limited liability to the extent of their investment in the company and do not participate in day-to-day management.

Limited Partner

A partner in a business venture who doesn't participate in daily operations and whose financial responsibility is capped at their investment level.