Beginning at Long-Run Equilibrium in the Dynamic Model of Aggregate

question 46

Multiple Choice

Beginning at long-run equilibrium in the dynamic model of aggregate demand and aggregate supply, in the period in which a positive supply shock occurs, the DAS curve _____ and the DAD curve _____.

• A) shifts upward; shifts rightward
• B) shifts upward; does not shift
• C) does not shift; does not shift
• D) shifts downward; shifts leftward

---

Definitions:

Sells

Engages in the act of offering goods or services in exchange for money or other compensation; a rephrased definition of 'Sellers.'

Highest Amount

The maximum quantity or degree of something that is recorded, attained, or allowed.

Consumer

An individual who purchases goods or services for personal use.

Market Equilibrium

Market equilibrium occurs when the quantity demanded of a good matches the quantity supplied, leading to a stable market price where there is no tendency for it to change.