Answered: 41) The three business cycle models…

41) The three business cycle models differ mostly in their treatment of A) aggregate demand B) short-run aggregate supply C) long-run aggregate supply D) productivity shocks

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

41) The three business cycle models differ mostly in their treatment of
A) aggregate demand
B) short-run aggregate supply
C) long-run aggregate supply
D) productivity shocks

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A supply shock, such as the development of a new technology, production costs and shifts the short run aggregate supply curve Negative; lowers; rightward Negative, raises, leftward Positive; lowers; rightward Positive; raises; leftward