Pessimism Suppose the Economy Is in Long-Run Equilibrium. Then Because of of Corporate

question 56

Multiple Choice

Pessimism
Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time.


-Refer to Financial Crisis.In the long run,if the Fed does not respond,the change in price expectations created by the crisis shifts

• A)aggregate demand right.
• B)aggregate demand left.
• C)short-run aggregate supply right.
• D)short-run aggregate supply left.

---

Definitions:

Translocation

In plants, the movement of substances like sugars and nutrients from leaves to other parts of the plant through the phloem.

Growth Ring

A layer of wood produced by a tree or shrub in a growing season, visible as rings in a cross-section of the stem, used to estimate age and growth conditions.

Xylem

A type of vascular tissue in plants responsible for conducting water and minerals from the roots to the rest of the plant.

Tension-Cohesion Model

A theory explaining the movement of water through plants, where water molecules stick together (cohesion) and are pulled up the plant through tension.