Scenario 14-1
The economy is in long-run equilibrium. Suddenly, due to improved international relations, a boom experienced by a major trading partner, and the increased confidence of policymakers, citizens become more optimistic about the future and stay this way for a long time.
-Refer to the Scenario 14-1. Initially, which curve shifts in which direction?
A) AD shifts right.
B) AD shifts left.
C) Short-run AS shifts right.
D) Short-run AS shifts left.
Correct Answer:
Verified
Q145: How does an economic contraction that is
Q146: Scenario 14-1
The economy is in long-run equilibrium.
Q147: Figure 14-1 Q148: What has been suggested as a cause Q149: Scenario 14-2 Q151: How do prices change due to an Q152: Scenario 14-2 Q153: If the economy is initially in long-run Q154: Scenario 14-1 Q155: Figure 14-1 
The economy is in long-run equilibrium.
The economy is in long-run equilibrium.
The economy is in long-run equilibrium.
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