For a Given Level of Inflation, If Concerns About Future

question 90

Multiple Choice

For a given level of inflation, if concerns about future weakness in the economy cause businesses to reduce their spending on new capital, then the ________ shifts ________.

• A)aggregate demand curve; right
• B)short-run aggregate supply line; downward
• C)aggregate demand curve; left
• D)short-run aggregate supply line; upward

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Definitions:

Self-determination

The right or ability of people, especially nations or groups, to shape their own destiny without external compulsion or interference.

Empathy

The ability to understand and share the feelings of another person.

Attentive Listening

The practice of listening actively with all senses, as a sign of respect and interest in what the speaker is saying.

Vagueness

The quality of being unclear, indefinite, or imprecise in meaning or intention.