Refer to the Above Graph

question 73

Multiple Choice

Refer to the above graph. Assume that the economy is in initial equilibrium where AD₁ intersects AS₁. If there is a decrease in aggregate demand to AD₂, then according to mainstream economists, if prices and wages are not flexible, this will result in an equilibrium at point:

• A) E
• B) B
• C) C
• D) D

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Definitions:

Human Evolutionary Line

The lineage leading to modern humans, detailing the biological and chronological development of human species over millions of years from primordial ancestors.

Bipedalism

Bipedalism is the ability to walk on two legs, a key feature that distinguishes humans and their ancestors from other primates and is considered a foundational trait in human evolution.

Large Brain

Refers to species, particularly humans, that have a relatively large brain size in comparison to their body size, which is associated with higher levels of cognition and complex behaviors.

Australopithecines

An early group of hominids known for walking upright and living in Africa approximately 4 to 2 million years ago, significant in human evolutionary history.