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Suppose That During the Great Depression Long-Run Aggregate Supply Shifted

question 132

Multiple Choice

Suppose that during the Great Depression long-run aggregate supply shifted left.To be consistent with what happened to the price level and output,what would have had to happen to aggregate demand?


Definitions:

Confirmation Bias

A cognitive bias that involves favoring information that confirms previously existing beliefs or biases.

Existing Belief

A pre-held notion or conviction that persists in an individual's thoughts before being exposed to new information or experiences.

Accurate Decisions

The process of making choices that closely match the correct or optimal outcomes based on available information.

Semantic Slanting

The use of language to influence an audience's perception by choosing words that carry strong connotations.

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