Pessimism Suppose the Economy Is in Long-Run Equilibrium. Then Because of of Corporate

Multiple Choice

Pessimism
Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time.


-Refer to Figure 33-7.If the economy starts at Y,then a recession occurs at

A) V.
B) W.
C) X.
D) Z.