Figure 33-1 Which of the Following Is True About the Economy Depicted

question 131

Multiple Choice

Figure 33-1

Which of the following is true about the economy depicted in Figure 33-1?

• A) Economy is experiencing supply-side inflation.
• B) Policymakers have chosen to fight inflation rather than unemployment.
• C) The increase in aggregate demand has increased prices but not real GDP.
• D) The slope of the aggregate supply curve embodies the trade-off between unemployment and inflation.

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Definitions:

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or expectations.

Empathy

The capacity to understand or feel what another person is experiencing from within their frame of reference, that is, the capacity to place oneself in another's position.

Just World

The belief that the world is fundamentally fair and all actions and decisions result in fair or deserved consequences.

Diving Board

A flexible board secured at one end and projecting over water, used for diving or jumping into a pool.