Refer to the Following Figure When Answering

question 40

Multiple Choice

Refer to the following figure when answering
Figure 14.3: AS/AD Model
-Consider Figure 14.3 above. If the economy begins in its long-run equilibrium and there is a decrease in the economy's financial friction, the economy would move from point ________ to ________.

• A) c; d
• B) a; d
• C) b; c
• D) a; b
• E) b; a

---

Definitions:

Mediator

An impartial third party who facilitates a negotiation or conflict resolution process between disputing parties.

Arbitrate

To officially settle a dispute or disagreement between two parties by making a decision as an impartial third party.

Direct Dialogue

A form of communication where parties engage in discussion without intermediaries, focused on clear and immediate exchange.

Third-Party Intervention

The involvement of an external entity in resolving disputes or conflicts between other parties, aiming to facilitate a negotiated solution.