Which of the Following Correctly Describes the Automatic Mechanism Through

question 35

Multiple Choice

Which of the following correctly describes the automatic mechanism through which the economy adjusts to long-run equilibrium?

• A)the leftward shift of the short-run aggregate supply curve that occurs after a recession
• B)the rightward shift of the short-run aggregate supply curve that occurs after a recession
• C)the leftward shift of the aggregate demand curve that occurs after a recession
• D)the rightward shift of the aggregate demand curve that occurs after a recession

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Definitions:

Noncontrolling Interest

A minority stake in a corporation, representing less than half of the voting shares, and therefore not having control over the company.

Initial Value Method

An accounting practice in which an investment is recorded at its purchase cost without adjusting for market variations.