Exhibit 14A-2 Macro AD-AS Model

question 44

Multiple Choice

Exhibit 14A-2 Macro AD-AS Model

-In Exhibit 14A-2,the intersection of AD with SRAS indicates:

• A) a short-run equilibrium.
• B) a long-run equilibrium.
• C) that the economy needs policies to reduce unemployment.
• D) that the economy is at full employment.

---

Definitions:

Behavioral

Pertaining to the actions or reactions of a person or animal in response to external or internal stimuli.

Psychology History

The study of the evolution of the field of psychology, covering the changing theories, practices, and key figures over time.

Mental Life

Pertains to the processes of the mind, including thoughts, feelings, and consciousness that constitute an individual's psychological existence.

Observable Behavior

Actions or reactions of an individual that can be directly seen and measured.