-The Figure Above Shows the Aggregate Demand, Short-Run Aggregate Supply

question 48

Multiple Choice

-The figure above shows the aggregate demand, short-run aggregate supply, and long-run aggregate supply curves for the U.S. economy. The economy is currently at point A. A cost-push rise in the price level will initially move the economy to point ___________and to point___________ .

• A) C when the money prices of raw materials rise; D when aggregate demand increases
• B) E when aggregate demand increases; D when the money prices of raw materials rise
• C) B when aggregate demand decreases; C when the money prices of raw materials rise
• D) F; A when the money prices of raw materials change

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Definitions:

Color Vision

The ability of the eyes to distinguish different wavelengths of light, enabling us to see a spectrum of colors.

Christine Ladd-Franklin

An American psychologist and logician known for her work in psychology of vision and color theory, as well as being one of the first women to make significant contributions to the field of psychology.

Unconscious Mind

Part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.

Psychoanalysis

A set of theories and therapeutic methods related to the study of the unconscious mind, which together form a method of treatment for mental disorders.