Use the Figure Below to Answer the Following Question(s)

question 29

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 9-2
-Which of the following is true for the economy depicted in Figure 9-2?

• A)Output equals potential real GDP.
• B)The actual rate of unemployment equals the natural rate of unemployment.
• C)The output is sustainable in the long run.
• D)All of the above statements are true.

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Definitions:

Repression

A psychological defense mechanism where unsettling thoughts, memories, or desires are unconsciously pushed from the conscious mind.

Fundamental

Fundamental refers to serving as an essential component or basis for something, being of central importance.

Defence Mechanism

Psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses.

Displacement

A psychological defense mechanism where an individual shifts emotions from one object or idea to another, often less threatening, target.