In the Figure Below, the Economy Is Initially in Long-Run

question 30

Multiple Choice

In the figure below, the economy is initially in long-run equilibrium at pointA. If there is an adverse supply shock that reduces potential output and shifts the long-run aggregate supply curve from LRAS to LRAS', then the new long-run equilibrium is reached at point:

• A) E.
• B) B
• C) C.
• D) D.

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Definitions:

Replications

The process of repeating research studies to verify or refute the findings of the original study.

Obedience Study

A research area in psychology that examines how individuals comply with authority, often highlighted by Stanley Milgram's experiments.

Components of Attitudes

Consist of cognitive (thoughts), affective (feelings), and behavioral (actions) elements that describe how and why people feel the way they do about various subjects.

Favorable Reaction

Refers to a positive or approving response to a situation, action, or information.