Refer to the Diagram Below

question 65

Multiple Choice

Refer to the diagram below. The initial aggregate demand curve is AD₁ and the initial aggregate supply curve is AS₁. Assuming no change in aggregate demand, the long-run response to a recession caused by cost-push inflation is best depicted as a:

• A) move from a to d along the long-run aggregate supply curve.
• B) rightward shift of the aggregate supply curve from AS₂ to AS₁.
• C) move from a to c to d.
• D) leftward shift of the aggregate supply curve from AS₁ to AS₂.

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Definitions:

Sustainability

The practice of maintaining processes or systems in a way that doesn't deplete the natural resources or harm the environment for future generations.

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Awareness and consideration of environmental impacts in decision making, often involving efforts to reduce negative effects on the environment.

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An evaluation of how effectively and efficiently a supply chain meets its objectives, often measured by metrics such as delivery time, quality, and cost.

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Emissions of greenhouse gases from sources that are directly owned or controlled by an entity.