Use the Following to Answer Questions

question 69

Multiple Choice

Use the following to answer questions :
Exhibit: Supply Shock

-(Exhibit: Supply Shock) In this graph,assume that the economy starts at point A and there is a favourable supply shock that does not last forever.In this situation,point ______ represents short-run equilibrium and point ______ represents long-run equilibrium.

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

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Definitions:

Habituation

A decrease in response to a stimulus after repeated exposure, indicating a form of learning or adaptation.

Stress

A physical or psychological response to internal or external pressures or threats, often resulting in physical and emotional reactions.

Cognitive

Related to the mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Hormones

Hormones are chemical substances produced in the body that regulate and control the activity of certain cells or organs.