When Both Long-Run and Short-Run Aggregate Supply Shift Leftward

question 2

Multiple Choice

When both long-run and short-run aggregate supply shift leftward,

• A) monetary policy is more likely to restore the economy to its prerecession conditions.
• B) inflation is not a concern.
• C) the natural rate of unemployment decreases.
• D) monetary policy can have no effect on the economy,even in the short run.
• E) monetary policy is much less likely to restore the economy to its prerecession conditions.

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Definitions:

Neurotransmitter

Neurotransmitters are chemical substances that transmit signals across a synapse from one neuron to another in the nervous system.

Dopamine

A neurotransmitter involved in controlling the brain's reward and pleasure centers. It also plays a significant role in movement and emotional responses.

Reuptake

The process of a neurotransmitter being reabsorbed by a nerve ending after it has transmitted a neural impulse.

Synaptic Vesicles

Membrane-bound sacs in a neuron that store neurotransmitters, which are released into the synaptic cleft during neural communication.