Figure 22-8

question 349

Multiple Choice

Figure 22-8. The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves. On the right-hand diagram, "Inf Rate" means "Inflation Rate."
-Refer to Figure 22-8. The shift of the aggregate-supply curve from AS₁ to AS₂

• A)results in a more favorable trade-off between inflation and unemployment.
• B)results in a more favorable trade-off between inflation and the growth rate of real GDP.
• C)represents an adverse shock to aggregate supply.
• D)represents a favorable shock to aggregate supply.

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Definitions:

Sodium Excretion

The process by which the kidneys remove excess sodium ions from the body to maintain electrolyte balance and blood pressure.

Kidney

An organ in vertebrates that is essential for the filtration and excretion of waste products from the blood and the regulation of bodily fluids.

Adrenal Medulla

The inner region of each adrenal gland; secretes epinephrine and norepinephrine.

Fight-or-Flight Response

A physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival.