What Adjusts to Restore General Equilibrium After a Shock to the Economy

question 15

Multiple Choice

What adjusts to restore general equilibrium after a shock to the economy?

• A)the LM curve
• B)the IS curve
• C)the FE line
• D)the labour supply curve

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Definitions:

Standard Deviation

It quantifies the amount of variation or dispersion of a set of data values from its mean, serving as an indicator of the data's spread.

Sobriety

The state of being sober, which can refer to abstinence from alcohol and drugs, or having a clear, unaffected mind.

Motor Skills

Abilities that involve the coordination of muscles to perform movements.

Null Hypothesis

In statistical analysis, it is the presumption that there is no effect or no difference and serves as the default or starting assumption for testing.