Scenario 14-2

question 209

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. In the long-run, the change in price expectations caused by pessimism leads to which of the following shifts?

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

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Definitions:

Generation

A group of individuals born and living contemporaneously, who have similar ideas, problems, attitudes, and are often defined by specific cultural trends.

Values

Core beliefs or principles that guide an individual's actions and judgments, influencing their behavior and attitudes towards others and situations.

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires, often considered key to personal development.

Personal Growth

The process of improving oneself through such activities as enhancing talents, increasing awareness, and building wealth.