Figure 22-8

question 225

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. A movement of the economy from point A to point B, and at the same time a movement from point C to point D, would be described as

• A)the outcome of a favorable supply shock.
• B)falling inflation.
• C)stagflation.
• D)All of the above are correct.

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Definitions:

Efficacy

The ability to produce a desired or intended result, often used in the context of medications or treatments.

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A psychological disorder marked by a persistent terror of becoming overweight and a deliberate avoidance of achieving a normal body weight.

Cognitive-Behavioral Therapy

A form of psychotherapy that treats problems by modifying dysfunctional emotions, behaviors, and thoughts through a goal-oriented, systematic approach.

Negative Reinforcements

A behavioral psychology concept where the removal of an unpleasant stimulus strengthens a particular response or behavior.