-In the Above Figure, Starting at E₃, If There Is

question 54

Multiple Choice

-In the above figure, starting at E₃, if there is an increase in technology that causes a permanent increase in production capabilities

• A)aggregate supply would shift to SRAS₀ and LRAS₁ would shift to LRAS₀.
• B)aggregate supply would shift to SRAS₁ and LRAS₀ would shift to LRAS₁.
• C)aggregate supply would shift to SRAS₂ and LRAS₀ would shift to LRAS₁.
• D)aggregate supply would shift to SRAS₁ and then return to SRAS₀.

Understand the concept of budget deficit and its components.

Analyze the impact of government spending and subsidies on future generations.

Comprehend the relationship between national debt and GDP.

Evaluate how government deficits affect intergenerational standard of living.

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Definitions:

Internal Push

An internal motivation or drive that compels an individual to take action or pursue goals.

External Pull

Influences or factors outside an individual that draw or entice them towards certain decisions, actions, or behaviors.

Incentive

Something that motivates or encourages someone to do something or increases the likelihood of a behavior.

Drive-Reduction Theory

A theory that explains motivation as being rooted in the desire to reduce uncomfortable internal states.