The Figure Below Shows the Relationship Between an Economy's Potential

question 50

Multiple Choice

The figure below shows the relationship between an economy's potential output,price level,and real GDP.According to those who favor a passive approach to policy,the economy will attain equilibrium at potential output when: ​
Figure 16.1​
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• A)the short-run aggregate supply curve shifts to the left.
• B)the short-run aggregate supply curve shifts to the right due to a fall in real wages.
• C)either the money supply or government spending is increased.
• D)either the money supply or government spending is decreased.
• E)aggregate demand is decreased.

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Definitions:

Energy Problems

Issues related to the production, distribution, and consumption of energy resources, often concerning efficiency, sustainability, and environmental impact.

Inhibited Sexual Desire

A type of sexual dysfunction characterized by a persistent or recurrent absence of sexual fantasies and desire for sexual activity.

Impulse Control

The ability to resist or delay an impulse, drive, or temptation to act and is related to self-regulation and emotional control.

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