Figure 35-4 -Refer to Figure 35-4. If the Economy Starts at 5

question 61

Multiple Choice

Figure 35-4
-Refer to Figure 35-4. 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:

Genetic Vulnerabilities

predispositions encoded in an individual's genes that may increase their risk for certain health conditions or diseases.

Neurotransmitter Activity

The action or process by which neurotransmitters are released by neurons, bind to receptors, and transmit signals across synapses in the nervous system.

Structural Defects

Faults or imperfections in the construction or composition of something, which may affect its strength, function, or aesthetics.

Oxytocin

A hormone and neurotransmitter involved in childbirth and lactation, also associated with empathy, trust, sexual activity, and relationship-building.