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Refer to the Diagram Below

question 65

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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: Refer to the diagram below. The initial aggregate demand curve is AD<sub>1</sub> and the initial aggregate supply curve is AS<sub>1</sub>. 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 AS<sub>2</sub> to AS<sub>1</sub>. C)  move from a to c to d. D)  leftward shift of the aggregate supply curve from AS<sub>1</sub> to AS<sub>2</sub>.

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Definitions:

Sales Forecast

A Sales Forecast is an estimate of the amount of sales a company expects to achieve over a specific period, based on market research, historical data, and other predictive methods.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, enabling effective cash management.

Capital Expenditure Budget

A budgeting plan for major investments in physical assets, such as buildings and equipment, that a company plans to acquire.

Budgeted Income Statement

A financial statement that projects a company’s expected revenues, expenses, and net income for a specific period, based on forecasts and strategic plans.

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