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Starting from Potential Output, If Firms Become Less Optimistic About

question 75

Multiple Choice

Starting from potential output, if firms become less optimistic about the future and decide to decrease their investment in new capital, then this will shift the ______ curve to the left and generate ______.


Definitions:

Erosion

Erosion is the process by which natural forces like water, wind, or ice wear away land surfaces, transporting the materials from one location to another.

Pollutants

substances that pollute something, especially water or the atmosphere, and can cause harm to the environment and health.

Flagship Species

Species that evoke a strong emotional response in humans; charismatic, cute, regal (e.g., lions, tigers, dolphins, pandas).

Dolphins

Dolphins are marine mammals known for their intelligence, social behavior, and playful antics, inhabiting oceans and seas worldwide.

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