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:

Elevate Mandible

Elevating the mandible refers to the action of lifting or closing the lower jaw, a movement primarily facilitated by the masseter and temporalis muscles.

Mylohyoid

A muscle beneath the chin that plays a role in elevating the floor of the mouth during swallowing.

Adduct

To draw a limb or part of the body toward the median axis.

Gluteus Medius

A muscle located on the outer surface of the pelvis, crucial for hip stabilization and movement.