Scenario 14-2

question 110

Multiple Choice

Scenario 14-2. The economy is in long-run equilibrium. Suddenly, due to corporate scandals, international tensions, and the loss of confidence among policymakers, citizens become pessimistic concerning the future. They maintain this level of pessimism for a long time.
-Refer to Scenario 14-2. Initially, which curve shifts in which direction?

• A)AD shifts right.
• B)AD shifts left.
• C)Short-run AS shifts left.
• D)Short-run AS shifts right.

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Definitions:

Emotional Support

Assistance provided through empathy, concern, and affection to help individuals cope with stress, challenges, or emotional distress.

Problem Solving

A method of identifying a problem, finding alternative solutions, and choosing and implementing the most suitable solution.

Reference Group

A group that individuals compare themselves to for self-evaluation or guidance in forming attitudes and behaviors.

Values

Core beliefs or principles that guide behaviors and decisions in individuals and organizations.