Use the Following to Answer Questions

question 7

Multiple Choice

Use the following to answer questions :
Exhibit: Shift in Aggregate Demand
-(Exhibit: Shift in Aggregate Demand) In this graph, initially the economy is at point E, with the price P₀ and output Y. Aggregate demand is given by curve AD₀, and SRAS and LRAS represent, respectively, short-run and long-run aggregate supply. Now assume that the aggregate demand curve shifts so that it is represented by AD₂. The economy moves first to point ______ and then, in the long run, to point ______.

• A) A; D
• B) D; A
• C) A; B
• D) B; A

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Definitions:

Management Process

A systematic approach to planning, organizing, leading, and controlling an organization's resources to achieve its objectives.

Planning and Budgeting

The process of defining an organization's goals, establishing strategies to achieve those goals, and allocating resources accordingly.

Controlling

The management function that involves monitoring performance, comparing it with goals, and taking corrective action as needed.

Democratic Style

A leadership approach that involves team members in the decision-making process, valuing their input and fostering a collaborative working environment.