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tatuchka [14]
3 years ago
13

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Economy of the north

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1 answer:
Damm [24]3 years ago
4 0
In the North, the economy was based on industry. They built factories and manufactured products to sell to other countries and to the southern states. ... Most people in the North worked in factories or owned their own businesses. They also planted small farms or gardens to help feed their families.
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Answer:

The answer is: b

Explanation:

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Holding all else constant, short run changes in the economy would not change the potential output levels. The long-run aggregate supply curve would remain fixed at the potential level of output. However, these changes: international tensions, corporate scandals and loss of confidence in policymakers would cause shifts in the aggregate demand curve since demand would be adversely affected.

Consumer confidence is the perspective or outlook that consumers have on the state of the economy. The destabilising factors given in this scenario would raise the levels of uncertainty and perceived risk, reducing the confidence levels of consumers and ultimately resulting in reduced demand. In long-run equilibrium, when demand is reduced, it is indicated by a leftward shift in the aggregate demand curve.

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