Aggregate Demand and Supply Curves Have Been Widely Used to Analyze

question 141

Multiple Choice

Aggregate demand and supply curves have been widely used to analyze the performance of the macroeconomy. Figure 5-3 shows four diagrams that represent different changes in the macroeconomy. Choose the diagram that best represents the situations described in the following questions. Figure 5-3  

Which graph in Figure 5-3 best represents the supply-side shock of the 1970s oil crisis?

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Linguistic Determinism

The idea that language shapes and limits human thought processes and perceptions.

Telegraphic Speech

A stage in language development where toddlers combine a limited number of words to convey a message, mimicking the concise style of telegraphic messages.

Babbling

A stage in language development involving the production of sounds, combinations of sounds, and syllables that precede the formation of meaningful words.

Critical Period

A specific time during development when the presence or absence of certain experiences has a long-lasting impact on the individual.