Refer to the Above Figure

question 268

Multiple Choice

Refer to the above figure. Suppose the original long-run equilibrium was at point B. What could have caused the move to the current equilibrium?

• A) Decreases in the price level caused short-run aggregate supply to fall.
• B) Input prices must have increased, causing long-run aggregate supply to increase.
• C) Aggregate demand must have decreased.
• D) A temporary reduction in production due to bad weather.

---

Definitions:

Alpha-Galacturonic Acid

A component of pectin, a polysaccharide found in the cell walls of plants, involved in maintaining cell structure and rigidity.

Glucagon

A hormone produced by the pancreas that promotes the increase of blood glucose levels by stimulating glycogen breakdown in the liver.

Pectin

A complex carbohydrate found in the cell walls of plants that is often used as a gelling agent in foods and for its dietary fiber properties.

Hemicellulose

A polysaccharide found in plant cell walls that works with cellulose and lignin to provide structural support.