Refer to the Graph Above

question 93

Multiple Choice

Refer to the graph above. The economy is at point B₂, and then aggregate demand increases. In the short run, the economy will:

• A) Stay at point B₂ and remain there in the long run
• B) Move to point C₂ and in the long run move on to B₃.
• C) Move to point B₃ and in the long run move on to C₂.
• D) Move to point B₁ and in the long run move back to B₂.

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Definitions:

Capital Investment

Funds spent by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Land Reclamation

The process of creating new land from oceans, riverbeds, or lake beds, or restoring an area to a more usable state.

Corporate Social Responsibility

A business model that helps a company be socially accountable to itself, its stakeholders, and the public, by practicing sustainable and ethical operations.

Local Issues

Problems or concerns that affect a specific geographical area or community, often requiring local governance intervention.