Use the Following to Answer Questions

question 75

Multiple Choice

Use the following to answer questions:
-(Figure: AD-AS Model and the Short-Run Phillips Curve) Refer to Figure: AD-AS Model and the Short-Run Phillips Curve. If the central bank decreases the money supply so that aggregate demand shifts from AD₂ to AD₁, then the unemployment rate will be:

• A) zero.
• B) 2%.
• C) 4%.
• D) 6%.

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Definitions:

External Intercostal Muscles

The External Intercostal Muscles are a group of muscles found between the ribs that aid in the process of inhalation by elevating the ribcage, expanding the thoracic cavity.

Pleural Cavity

The thin fluid-filled space between the two pulmonary pleurae of each lung, involved in respiratory mechanics.

Parietal Pleura

Serous membrane that lines the different parts of the wall of the pleural cavity.

Mediastinum

The central compartment of the thoracic cavity surrounded by loose connective tissue, containing the heart, esophagus, trachea, major blood vessels, and other structures.