Refer to the Diagram $\mathrm { PC } _ { 1 } .$

question 87

Multiple Choice

Refer to the diagram. Point b would not be permanent because the

• A) economy would move from b to a on PC \(\mathrm { PC } _ { 1 } .\)
• B) short-run Phillips Curve would shift from PC \(\mathrm { PC } _ { 1 } \text { to } \mathrm { PC } _ { 2 }\) and unemployment would increase to The natural rate at c.
• C) economy would immediately move from b to c to d.
• D) economy would move from b directly to d.

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Definitions:

Limbic System

A complex system of nerves and networks in the brain, involved in various emotional states and behavioral responses, such as fear, pleasure, and happiness.

Prefrontal Cortex

The region of the frontal lobes of the brain involved in complex cognitive behaviors, personality expression, decision making, and moderating social behavior.

Dual Process Model

A theory suggesting there are two distinct systems for processing information: a fast, automatic, intuitive system, and a slower, more analytical, reflective system.

Prefrontal Cortex

The prefrontal cortex is a region of the brain associated with executive functions like decision-making, personality expression, and managing social behavior.