-Use the Figure Above to Answer This Question

question 529

Multiple Choice

-Use the figure above to answer this question. Suppose the economy is operating at point a. A move to _________could be explained by __________.

• A) point b; an increase in real GDP
• B) point b; an increase in the nominal interest rate
• C) point e; an increase in U.S. exports
• D) point c; an increase in the use of credit cards

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Definitions:

Feedback Mechanism

A regulatory process in biological systems where the output of a system influences its own activity, maintaining homeostasis.

Control Center

In a regulatory system, the component that compares values to their normal range and sends instructions to correct any deviations.

Frontal

Pertaining to the forehead or the front part of the brain responsible for important cognitive skills and emotional expression.

Sagittal

Relating to or denoting a plane that divides the body into left and right portions.