Refer to the Figure Below

question 22

Multiple Choice

Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as

• A) Aggregate demand shifting rightward
• B) Aggregate demand shifting leftward
• C) Short-run aggregate supply shifting downward
• D) long-run aggregate supply shifting leftward

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Definitions:

Compensation

Payment or reward given for services rendered, loss experienced, or damages incurred.

Battery

A civil wrong that occurs when one person intentionally and voluntarily brings about a non-consented harmful or offensive contact with a person or something closely associated with him or her. Battery requires an actual contact.

Consent

A voluntary agreement to another's proposal or to engage in a particular activity.

Duty Of Care

A legal obligation requiring individuals to exercise a standard of reasonable care while performing acts that could foreseeably harm others.