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Suppose That During the Great Depression Long-Run Aggregate Supply Shifted

question 12

Multiple Choice

Suppose that during the Great Depression long-run aggregate supply shifted left.To be consistent with what happened to the price level and output,what would have had to happen to aggregate demand?


Definitions:

Agent

A person authorized to act on behalf of another, known as the principal, in business transactions or legal matters.

Principal

The main party to a transaction or contract who has authorized another party (agent) to act on their behalf.

Duty Of Obedience

The requirement for directors, officers, and agents of a corporation to act within the scope of their authority and in the best interest of the corporation.

Unauthorized Contract

A contract made by a person who lacks the authority to do so, potentially making it unenforceable against the presumed principal.

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