Suppose There Was an Economic Contraction Caused by a Shift

question 240

Multiple Choice

Suppose there was an economic contraction caused by a shift in aggregate supply; suppose the central bank changes the money supply to offset the effects of that contraction. How would the effects of the change in money supply be reflected in the aggregate demand and aggregate supply model?

• A)Aggregate supply would shift to the right
• B)Aggregate supply would shift to the left
• C)Aggregate demand would shift to the right.
• D)Aggregate demand would shift to the left.

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Definitions:

Test-taking Anxiety

Anxiety experienced before or during exam situations, which can impair the ability to perform well.

Task-oriented Coping Statement

Assertive expressions focused on dealing with stress or challenges through direct action and problem solving.

Feeling Stressed

Experiencing emotional or physical tension due to perceived challenges or threats.

Task-oriented Coping Statement

Positive affirmations or reminders used to focus one's efforts on the activities or tasks at hand as a strategy for managing stress or overcoming obstacles.