Figure 17-12 -Refer to Figure 17-12.In the Dynamic AD-AS Model,the Economy Is

question 219

Multiple Choice

Figure 17-12

-Refer to Figure 17-12.In the dynamic AD-AS model,the economy is at point A in year 1 and is expected to go to point B in year 2,and the Federal Reserve pursues policy.This will result in

• A) unemployment rates higher than what would occur if no policy had been pursued.
• B) inflation rates higher than what would occur if no policy had been pursued.
• C) potential real GDP levels lower than what would occur if no policy had been pursued.
• D) real GDP levels higher than what would occur if no policy had been pursued.

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Definitions:

Brown v. Board of Education

A landmark Supreme Court decision in 1954 that declared state laws establishing separate public schools for black and white students to be unconstitutional.

Desegregation

The process of eliminating segregation, or separation, often referring to racial integration in schools, housing, and public facilities.

Thirteenth Amendment

Amendment to the United States Constitution that abolished slavery and involuntary servitude, except as punishment for a crime.

Slavery

A practice or system in which individuals are owned as property by others and are forced to work without rights or compensation.