Scenario 14-1

question 55

Multiple Choice

Scenario 14-1. The economy is in long-run equilibrium. Suddenly, due to improved international relations and the increased confidence of policymakers, citizens become more optimistic about the future and stay this way for a long time.
-Refer to Scenario 14-1. In the long-run, how does the change in price expectations created by optimism change the aggregate demand and aggregate supply diagram?

• A)The long-run aggregate supply curve shifts left.
• B)The long-run aggregate supply curve shifts right.
• C)The short-run aggregate supply curve shifts right.
• D)The short-run aggregate supply curve shifts left.

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Definitions:

Eminent Individuals

Eminent individuals refer to people who are highly distinguished or renowned in their fields or professions.

Menopause

The time in a woman's life, typically between 45 and 55 years of age, when menstrual cycles cease permanently, marking the end of reproductive capability.

Cessation

The process of ending or being brought to an end, commonly used in the context of stopping a behavior or activity, such as smoking cessation.

Ovulation

The phase of the menstrual cycle during which a mature egg is released from the ovary, making it available for fertilization.