The Figure Given Below Represents the Long-Run Equilibrium in the Aggregate

question 8

Multiple Choice

The figure given below represents the long-run equilibrium in the aggregate demand and aggregate supply model. Figure 8.2 Refer to Figure 8.2.The combination of rising prices and falling output is known as stagflation.This phenomenon is represented by which of the following shifts?

• A) to
• B) to
• C) to
• D) to
• E)The combination of to and to

---

Definitions:

Space Race

The period of cold war competition between the United States and the Soviet Union to achieve significant milestones in space exploration from the late 1950s to the early 1970s.

Soviet Union

A socialist state that existed from 1922 to 1991 in Eastern Europe and Northern Asia, composed of multiple republics, and led by the Russian Communist Party.

Nuclear Weapons

Explosive devices whose destructive potential derives from nuclear reactions, either fission or a combination of fission and fusion, capable of causing massive destruction.

Soviet Union

Formerly the largest country in the world by area, encompassing multiple republics under a communist government, influential in 20th-century global politics, economy, and culture before its dissolution.