Figure 18-5 -Refer to Figure 18-5.In the Dynamic Model of AD-AS in Model

question 198

Multiple Choice

Figure 18-5

-Refer to Figure 18-5.In the dynamic model of AD-AS in the figure above,if the economy is at point A in year 1 and is expected to go to point B in year 2,and no fiscal or monetary policy is pursued,then at point B

• A) the unemployment rate is very low.
• B) firms are operating below capacity.
• C) the economy is above full employment.
• D) income and profits are definitely rising.
• E) there is pressure on wages and prices to rise.

---

Definitions:

Weschler

Refers to a series of standardized tests used to assess cognitive and intellectual abilities in children and adults.

Spearman

Refers to Charles Spearman, a psychologist known for his work in intelligence research and the concept of the general intelligence factor "g".

Anterior Cingulate Cortex

A region of the brain involved in a variety of functions, including emotion regulation, decision-making, and impulse control.

Executive Control

Processes such as making plans or overriding habitual responses that let the brain direct its own cognitive activities.