Exhibit 14A-2 Macro AD-AS Model

question 4

Multiple Choice

Exhibit 14A-2 Macro AD-AS Model

-In Exhibit 14A-2,the long-run aggregate supply curve represents:

• A) potential real GDP output for this economy.
• B) that the economy is experiencing zero inflation.
• C) that the economy is experiencing a recessionary gap.
• D) the level of real GDP where the unemployment rate is zero.

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Definitions:

Impersonal Pronouns

Pronouns used to refer to subjects without specifying gender or identity, often used in general statements or instructions.

Positive Emotions

Feelings that are generally beneficial and enjoyable, including happiness, joy, love, and gratitude.

Linguistic Determinism

Theory that describes how the use of language determines or influences thoughts and perceptions.

Sapir-Whorf Hypothesis

Based on the principles of linguistic determinism and linguistic relativity, the hypothesis that language shapes our thoughts and culture, and our culture and thoughts affect the language we use to describe our world.