Beginning from Short-Run Equilibrium at Point E₂ in Exhibit 14A-1,the

question 14

Multiple Choice

Beginning from short-run equilibrium at point E₂ in Exhibit 14A-1,the economy's movement to a new position of long-run equilibrium would best be described as:

• A) a movement along the AD₂ curve with a shift in the SRAS₁ curve.
• B) a movement along the SRAS₂ curve with a shift in the AD₂ curve.
• C) a shift in the LRAS curve to an intersection at E₁.
• D) no shift of any kind.

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Definitions:

Reinforcer

In the context of behavioral psychology, a stimulus that follows a behavior and increases the likelihood of the behavior being repeated.

Desired Behavior

Refers to the specific actions or reactions an individual or organization aims to elicit from others through various strategies or interventions.

Legitimate Power

Authority or power that is recognized and respected by others because it derives from a position of official responsibility or role within an organization.

Reward Power

The influence and control gained by offering something desirable, motivating others to respond positively.