Figure 17-12 -Refer to Figure 17-12.In the Dynamic AD-AS Model,if the Economy

question 36

Multiple Choice

Figure 17-12

-Refer to Figure 17-12.In the dynamic AD-AS model,if the economy is at point A in year 1 and is expected to go to point B in year 2,and the Federal Reserve pursues no policy,then at point B

• A) firms are producing above capacity.
• B) there is pressure on wages and prices to fall.
• C) the unemployment rate is greater than the natural rate of unemployment.
• D) incomes and profits are falling.

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Definitions:

Heart Beats

The rhythmic contraction and relaxation of the heart muscles that circulate blood throughout the body.

Tympanic Thermometer

A type of electronic thermometer that measures infrared energy emitted from the tympanic membrane.

Disposable Sheath

A protective cover designed to be used once and then discarded, often used to prevent contamination or infection.

Temporal Thermometers

Instruments that measure body temperature through the temporal artery on the forehead, offering non-intrusive and quick readings.