Figure 95 Alt Text for Figure 9

question 125

Multiple Choice

Figure 9.5 Alt text for Figure 9.5: In figure 9.5, a graph comparing real GDP and price level.
Long description for Figure 9.5: The x-axis is labelled, real GDP (trillions of 2007 dollars) , and the y-axis is labelled, price level (CPI) .5 lines are shown; SRAS1, SRAS2, AD1, AD2, and LRAS.Line SRAS1 begins above the vertex and slopes up to the top right corner.Line SRAS2 follows the same slope as line SRAS1, but is plotted to the right.Line AD1 begins at the top left corner and slopes down to the bottom center.Line AD2 follows the same slope as AD1, but is plotted to the right.Line SRAS1 intersects line AD1 at point C, more than half way along both the lines.Line SRAS1 intersects line AD2 at point B, approximately 3 quarters of the way along both lines.Line SRAS2 intersects line AD1 at point D, approximately 3 quarters of the way along both lines.Line SRAS2 intersects line AD2 at point A, more than half way along both lines.Line LRAS is perpendicular to the x-axis, passing through the points A and C, and intersecting all the 4 lines.
-Refer to Figure 9.5.Which of the points in the above graph are possible short-run equilibria but not long-run equilibria? Assume that Y₁ represents potential GDP.

• A)A and B
• B)A and C
• C)B and C
• D)C and D
• E)B and D

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Definitions:

Video Games

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Promise

A promise is a declaration or assurance that one will or will not do something, often creating an expectation or obligation.

Nominal Consideration

A very small or token amount paid in a transaction to make it legally valid, even though the actual value of the transaction may be much larger.

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The freedom to enter into and enforce contracts without unnecessary interference by the state.