Use the Following to Answer Questions

question 7

Multiple Choice

Use the following to answer questions :
Exhibit: Shift in Aggregate Demand
-(Exhibit: Shift in Aggregate Demand) In this graph, initially the economy is at point E, with the price P₀ and output Y. Aggregate demand is given by curve AD₀, and SRAS and LRAS represent, respectively, short-run and long-run aggregate supply. Now assume that the aggregate demand curve shifts so that it is represented by AD₂. The economy moves first to point ______ and then, in the long run, to point ______.

• A) A; D
• B) D; A
• C) A; B
• D) B; A

Understand the concept and implications of privatization within government services.

Identify the importance and functioning of merit-based employment systems in preventing patronage and ensuring efficient governance.

Recognize the impact and purpose of legislative acts aimed at reforming the civil service and protecting employees.

Understand the historical context and evolution of federal employment practices, including the shift from the spoils system to merit-based systems.

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Definitions:

FOB Shipping

Free On Board Shipping, a term used in shipping agreements to specify which party (buyer or seller) pays for shipping costs and when the ownership of the goods transfers.

Import Duties

Import duties are taxes imposed by a government on goods imported into a country, often used to protect domestic industries and raise revenue.

Merchandise Cost

Merchandise cost is the total expense incurred to purchase goods for resale, including the purchase price, shipping, handling, and import duties.

Gross Profit Method

A technique to estimate the amount of ending inventory and cost of goods sold by using the gross profit margin.