Optimism Imagine that the economy is in long-run equilibrium. Then, perhaps because of improved international relations and increased confidence in policy makers, people become more optimistic about the future and stay this way for some time. Refer to Optimism. Which curve shifts and in which direction? Select one: a.aggregate supply shifts left. b.aggregate demand shifts left c.aggregate supply shifts right. d.aggregate demand shifts right

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Q: long-run equilibrium.

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Q: aggregate demand shifts left, then in the short run

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