Figure 96 Alt Text for Figure 9

question 227

Multiple Choice

Figure 9.6 Alt text for Figure 9.6: In figure 9.6, a graph depicting short-run equilibrium and long-run equilibrium.
Long description for Figure 9.6: 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 near the bottom left 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 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 the line AD2 at point A, more than half way along both lines.Line LRAS is perpendicular to the x-axis, passing through points A and C and intersecting all 4 lines.
-Refer to Figure 9.6.Suppose the economy is at point A.If government spending increases in the economy, where will the eventual long-run equilibrium be?

• A)A
• B)B
• C)C
• D)D
• E)the resulting long-run equilibrium is not shown in the figure.

---

Definitions:

Phonological Loop

A component of the working memory model that is responsible for handling auditory information and the temporary storage of spoken words.

Short-Term Memory

The part of the memory system that is responsible for temporarily holding small amounts of information in consciousness.

Duration

the length of time that something lasts or continues.

Rehearsal

A cognitive process in which information is repeated over and over as a possible way of learning and remembering it.