Exhibit 10-2 Aggregate Supply and Demand Curves

question 44

Multiple Choice

Exhibit 10-2 Aggregate supply and demand curves

In Exhibit 10-2, the change in equilibrium from E₁ to E₂ represents:

• A) cost-push inflation.
• B) demand-pull inflation.
• C) price-push inflation.
• D) wage-push inflation.

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Definitions:

Cortisol

A hormone secreted by the adrenal cortex that elevates blood sugar and protects the body’s tissues in case of injury; if chronically elevated due to stress, it can lead to hypertension, immune disorders, other illnesses, and possibly depression.

Hippocampus

A major component of the brain, involved in learning and memory.

Biological Model

An approach to psychology focusing on understanding human behavior in terms of biological responses and processes.

Learning Model

A theoretical framework that describes how individuals acquire, process, and retain knowledge or skills.