Figure 1113 Alt Text for Figure 11

question 237

Multiple Choice

Figure 11.13 Alt text for Figure 11.13: In figure 11.13, a dynamic model of AD-AS.
Long description for Figure 11.13: The x-axis is labelled, real GDP (trillions of 2007 dollars) , with values $1.4, 1.5, 1.6 marked.The y-axis is labelled, price level (CPI) , with values 100 and 102 marked.6 lines are shown; SRAS1, SRAS2, AD1, AD2, LRAS1, LRAS2.Line SRAS1 begins in 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 end of the x-axis.Line AD2 follows the same slope as AD1, but is plotted to the right.Line LRAS1 is perpendicular to the x-axis, and begins from the x-axis value $1.4.Line LRAS2 is perpendicular to the x-axis, and begins from the value 1.6.Line LRAS1 intersects line AD1 and SRAS1 at point A ($1.4, 100) .Lines AD2 and SRAS2 intersect at point B (1.5, 102) .Points A and B are connected to their respective coordinates on the x-axis and y-axis with dotted lines.Line LRAS2 intersects lines SRAS1 and SRAS2 on the right end of these lines.Similarly, line LRAS2 intersects lines AD1 and AD2 toward the right end of these lines.
-Refer to Figure 11.13.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, the Bank of Canada would most likely

• A)increase interest rates.
• B)decrease interest rates.
• C)not change interest rates.
• D)decrease the inflation rate target.
• E)increase the natural rate of unemployment.

Recognize the benefits of engaging in issues management for preventing or mitigating crises.

Compare and contrast different organizational responses to crises, understanding the stages of the issue life cycle.

Understand the variability and overlap in terms used to describe leadership behavior.

Compare and contrast the effectiveness of task-oriented versus relations-oriented leadership behaviors.

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Definitions:

Third-party Beneficiaries

Individuals or entities that are not part of a contract but stand to benefit from its execution.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, intended to standardize and simplify the laws across states.

Recognize

To acknowledge or formally accept something as valid, true, or significant.

Injured

The state of being harmed or damaged, physically, financially, or legally, due to another's acts or omissions.