Figure 22-8

question 141

Multiple Choice

Figure 22-8. The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves. On the right-hand diagram, "Inf Rate" means "Inflation Rate."
-Refer to Figure 22-8. Faced with the shift of the Phillips curve from PC₁ to PC₂, policymakers will

• A)ask whether the shift is temporary or permanent.
• B)be concerned with how people adjust their expectations of inflation as a result of the shift.
• C)face, as well, a decision as to whether to accommodate the shock.
• D)All of the above are correct.

---

Definitions:

Strong Base

A substance that has a high capacity to accept protons (H+) and is completely or nearly completely ionized in aqueous solution.

Weak Base

A chemical species that partially accepts protons in solution, leading to an increase in the pH of the solution.

Calcium Hydroxide

A white crystalline compound with the formula Ca(OH)2, often used in the production of cement, plaster, and in water treatment.

Strong Base

A strong base is a substance that can completely dissociate into its ions in aqueous solution, resulting in a high pH.