Use the Following to Answer Question 7

question 36

Multiple Choice

Use the following to answer question 7:
-(Figure: AD-AS Model) Refer to Figure: AD-AS Model. Suppose that the economy is at Y_E with a price level of P_1. Which of the following would represent the new long-run equilibrium position if the aggregate demand curve shifted to the right from AD₁ to AD₂ as a result of an increase in the money supply?

• A) Y_E and P₂
• B) Y_E and P₁
• C) Y₁ and P₂
• D) Y_E and P₃

---

Definitions:

Extreme Stress

A condition of overwhelming mental or emotional pressure beyond an individual's ability to cope.

Coping

Managing stress or adversity through various strategies and techniques.

Difficult Temperament

A temperament style characterized by high reactivity and poor self-regulation or adaptability, often evident in the early stages of life.

Young Adults

Individuals in the late teenage years to early twenties, often considered a transitional phase from adolescence to adulthood.