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question 41

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Use the following to answer questions :
Exhibit: Shift in Aggregate Demand Use the following to answer questions : Exhibit: Shift in Aggregate Demand   -(Exhibit: Shift in Aggregate Demand)  Assume that the economy is initially at point A with aggregate demand given by AD<sub>2</sub>. A shift in the aggregate demand curve to AD<sub>0</sub> could be the result of either a(n)  ______ in the money supply or a(n)  ______ in velocity. A)  increase; increase B)  increase; decrease C)  decrease; increase D)  decrease; decrease
-(Exhibit: Shift in Aggregate Demand) Assume that the economy is initially at point A with aggregate demand given by AD2. A shift in the aggregate demand curve to AD0 could be the result of either a(n) ______ in the money supply or a(n) ______ in velocity.


Definitions:

Shirking

Shirking describes when employees underperform or exert less effort than expected because of insufficient incentives or the absence of effective monitoring.

Perfectly Inelastic

Describes a situation where the quantity demanded or supplied does not change in response to a change in price; the demand or supply curve is vertical.

Labor Supply Curve

A visual diagram that illustrates the connection between the salary provided and the amount of work employees are ready to offer.

Competitive Firm

A company operating in a market where there are many buyers and sellers, and no single entity can influence the market price.

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