Multiple Choice
Scenario 14-2
The economy is in long-run equilibrium. Suddenly, due to corporate scandals, a recession experienced by a major trading partner, and the loss of confidence among policymakers, citizens become pessimistic concerning the future. They maintain this level of pessimism for a long time.
-Refer to the Scenario 14-2. Initially, which curve shifts in which direction?
A) AD shifts right.
B) AD shifts left.
C) Short-run AS shifts left.
D) Short-run AS shifts right.
Correct Answer:
Verified
Correct Answer:
Verified
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