Refer to the Information Provided in Figure 29

question 253

Multiple Choice

Refer to the information provided in Figure 29.2 below to answer the question(s) that follow. Figure 29.2
-Refer to Figure 29.2. If the economy is currently at Point B and policy makers implement a policy which shifts the aggregate demand curve to AD₁, the time the economy needs to make the adjustment is known as the

• A) implementation lag.
• B) recognition lag.
• C) response lag.
• D) frictional lag.

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Definitions:

Sapir-Whorf Hypothesis

Based on the principles of linguistic determinism and linguistic relativity, the hypothesis that language shapes our thoughts and culture, and our culture and thoughts affect the language we use to describe our world.

Linguistic Relativity

Theory that each language includes some unique features that are not found in other languages.

Malapropism

The mistaken use of a word in place of a similar-sounding one, often with unintentionally amusing effect.

Static Evaluation

Pronouncement that does not take the possibility of change into consideration.