Suppose an Economy Is Initially in Long-Run Equilibrium and It

question 29

Multiple Choice

Suppose an economy is initially in long-run equilibrium and it then experiences a supply shock in the form of exceptionally high energy prices.Which of these will be true in this economy?

• A)The short-run aggregate supply curve will shift leftward,and the long-run supply curve will shift rightward.
• B)The short-run aggregate supply curve and the long-run supply curve will shift rightward.
• C)The short-run aggregate supply curve will not shift,and the long-run aggregate supply curve will shift rightward.
• D)The short-run aggregate supply curve will shift rightward,but the long-run aggregate supply curve will not shift.
• E)The short-run aggregate supply curve and the long-run supply curve will shift leftward.

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Definitions:

Streamlined Predators

Predators with bodies designed to reduce resistance while moving swiftly through their environment, often found in aquatic or aerial habitats.

Food Chains

A series of organisms each dependent on the next as a source of food, showing the flow of energy and nutrients from one entity to another.

Facilitator of Succession

An organism or factor that catalyzes ecological succession, ensuring the progression from one ecological community to another, leading to increased biodiversity.