Refer to Figure 13.7 for the Following Questions

question 31

Multiple Choice

Refer to Figure 13.7 for the following questions.
Figure 13.7

-Suppose that the economy is at point A on the Phillips curve in Figure 13.7. If the aggregate demand curve shifts to right by the same amount as long-run aggregate supply, then the economy will:

• A)remain at point A on the Phillips curve.
• B)move to point B on the Phillips curve.
• C)move to point C on the Phillips curve.
• D)move to point D on the Phillips curve.

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Definitions:

Unconscious Processing

Mental processes that occur without conscious awareness or intention, influencing perceptions, thoughts, and behaviors.

Confirmation Bias

The tendency to search for, interpret, and remember information in a way that confirms one's preconceptions, leading to statistical errors.

System I

A term often used to describe intuitive, fast, and automatic thinking processes, as opposed to more deliberate and analytical decision-making.

System II

A term often used to describe slow, deliberate, and analytical thought processes in dual-process theories of cognition.