-Refer to the Above Figure

question 2

Multiple Choice

-Refer to the above figure. Suppose the economy's initial equilibrium is represented by the intersection of LRAS₁ and AD₁. Now there is an increase in labor productivity which increases total planned production at any given price level and aggregate demand remains stable. The resulting change in the economy's long-run equilibrium position would be represented by a

• A) movement from B to D.
• B) movement from C to D.
• C) movement from C to B.
• D) movement from A to B.

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Definitions:

Southern Landowners

Traditionally refers to the wealthy individuals who owned expansive tracts of agrarian land in the Southern United States, playing a crucial role in the region's economy, politics, and social structure, particularly in the era of slavery.

Alsace

A historical region in eastern France, known for its strategic importance and cultural blend of French and German influences, often a point of contention between the two countries.

France and Germany

Two major European countries with a complex history of rivalry, cooperation, and influential roles in European and world affairs.

German Spoken

is a reference to the German language, which is spoken in Germany, Austria, Switzerland, and other countries as a mother tongue or foreign language.