Figure 17-1 -Which of the Following Is True About the Economy Depicted

question 31

Multiple Choice

Figure 17-1

-Which of the following is true about the economy depicted in Figure 17-1?

• A)It is experiencing supply-side inflation.
• B)Policy makers 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:

Serial-Position Effect

A psychological phenomenon in which a person tends to remember the first and last items in a series better than the middle items.

Retrieval

The process of accessing and bringing into consciousness information stored in memory.

Stored Information

Data or knowledge retained in the mind or in digital/formal systems for future use.

Consciousness

A concept with many meanings, including sensory awareness of the world outside, direct inner awareness of one’s thoughts and feelings, personal unity, and the waking state.