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For the Following Question(s),assume That the Economy Is in Long-Run

Question 29

Multiple Choice

For the following question(s) ,assume that the economy is in long-run equilibrium in the aggregate demand/aggregate supply model and that some sort of event takes place.In each case,mark the most likely impact of the event on the aggregate demand/aggregate supply diagram given below.
Figure 10-19
For the following question(s) ,assume that the economy is in long-run equilibrium in the aggregate demand/aggregate supply model and that some sort of event takes place.In each case,mark the most likely impact of the event on the aggregate demand/aggregate supply diagram given below. Figure 10-19    -Refer to Figure 10-19.Consumers and businesses all suddenly decide that the future looks much better than it previously had. A) The aggregate demand curve would shift to the right. B) The aggregate demand curve would shift to the left. C) The short-run aggregate supply curve would shift to the right. D) The short-run aggregate supply curve would shift to the left.
-Refer to Figure 10-19.Consumers and businesses all suddenly decide that the future looks much better than it previously had.


A) The aggregate demand curve would shift to the right.
B) The aggregate demand curve would shift to the left.
C) The short-run aggregate supply curve would shift to the right.
D) The short-run aggregate supply curve would shift to the left.

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