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AD - AS Shocks

question 62

Multiple Choice

AD - AS Shocks AD - AS Shocks -On the graph above,suppose the economy is at point F when there is a permanent positive supply shock.The new long-run equilibrium is at point ________. A) F B) H C) I D) G E) none of the above
-On the graph above,suppose the economy is at point F when there is a permanent positive supply shock.The new long-run equilibrium is at point ________.

Definitions:

Interest Rate

The percentage charged on a loan or paid on deposits over a specific period of time, reflecting the cost of borrowing or the return on savings.

Consumes

The act of using up a resource or goods in the process of satisfying human needs or wants.

Utility Function

A utility function is a mathematical representation that assigns a level of utility or satisfaction to combinations of goods and services consumed.

Income

Refers to the income earned, either periodically or consistently, from employment or investment ventures.