The Figure Below Shows the Aggregate Demand Curve, the Long-Run

question 21

Multiple Choice

The figure below shows the aggregate demand curve, the long-run aggregate supply curve, and the short-run aggregate supply curve in an economy. Based on the figure, if an increase in aggregate demand from AD₀ to AD₁ is fully anticipated, the economy will move from point A to point _____ in the short run.Figure-1

• A)B
• B)C
• C)D
• D)E

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Definitions:

Fundamental Attribution Error

The tendency to attribute others' behaviors to their character or personality, while underestimating situational factors.

Dispositional Causes

Attributes an individual's behavior to their internal characteristics or personality traits rather than external environmental factors.

Situational Attributions

Situational attributions refer to the process of ascribing the cause of an individual's behavior to external factors, circumstances, or situations.

Fundamental Attribution Error

The tendency for individuals to overemphasize personality-based explanations for behaviors observed in others while underestimating the influence of situational factors.