-Refer to Figure 15-14

question 151

Multiple Choice

-Refer to Figure 15-14.Suppose a supply shock moves the economy from point A to point B.In the long run,we would expect

• A) the increase in real GDP to increase wages and shift the aggregate demand curve to the right
• B) the increase in real GDP to increase wages and shift the aggregate supply curve back to AS₁
• C) the decrease in the price level to encourage buying and shift the aggregate demand curve to the right
• D) wages to fall,causing the aggregate supply curve to shift rightward until full employment is restored
• E) the economy to remain at point B

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Definitions:

Coniferous Forests

Forest ecosystems dominated by cone-bearing trees such as pines, firs, and spruces, primarily found in cooler climates.

Higher Latitudes

Regions of the Earth closer to the poles, characterized by colder temperatures and, in many cases, unique ecological conditions.

Deserts

Extremely dry areas of land with sparse vegetation, characterized by receiving less than 25 centimeters (10 inches) of precipitation per year.

Earth's Land Surface

The solid surface layer of the Earth, as opposed to the ocean or sky; includes continents and islands.