Figure 22-7 Use This Graph to Answer the Questions Below

question 101

Multiple Choice

Figure 22-7
Use this graph to answer the questions below.
-Refer to figure 22-7. If the economy starts at 5% unemployment and 5% inflation then if the Federal Reserve pursues a contractionary monetary policy, in the short run the economy moves to

• A)3% unemployment and 5% inflation. In the long run the economy moves to 5% unemployment and 5% inflation.
• B)3% unemployment and 5% inflation. In the long run the economy moves to 5% unemployment and 3% inflation.
• C)7% unemployment and 3% inflation. In the long run the economy moves to 5% unemployment and 5% inflation.
• D)7% unemployment and 3% inflation. In the long run the economy moves to 5% unemployment and 3% inflation.

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Definitions:

Urna

A whorl of hair, represented as a dot, between the brows; one of the lakshanas of the Buddha.

Relief

A sculptural technique where the sculpted elements remain attached to a solid background of the same material, creating a design that projects from the surrounding surface.

Central Part

Refers to the middle or core area of an object, space, or concept, often considered the most important or focal point.

Metal Hooks

Tools or hardware made of metal designed for hanging or fastening items, widely used in various applications from clothing to construction.