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FIGURE 29-2 -Refer to Figure 29-2. the Movement of the Economy from Economy

Question 48

Multiple Choice

FIGURE 29-2 -Refer to Figure 29-2. The movement of the economy from E0 to E1 was likely caused by a A) positive demand shock associated with increased investment. B) negative demand shock due to government cut-backs. C) negative supply shock due to a rise in input prices. D) positive supply shock induced by developments of new technology. E) positive supply shock caused by lower nominal wages. FIGURE 29-2
-Refer to Figure 29-2. The movement of the economy from E0 to E1 was likely caused by a

A) positive demand shock associated with increased investment.
B) negative demand shock due to government cut-backs.
C) negative supply shock due to a rise in input prices.
D) positive supply shock induced by developments of new technology.
E) positive supply shock caused by lower nominal wages.

Correct Answer: