Figure 16-6 -Refer to Figure 16-6.In the Dynamic Model of AD-AS in of AD-AS

question 251

Multiple Choice

Figure 16-6
-Refer to Figure 16-6.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 at below capacity.
• C)the economy is below full employment.
• D)income and profits are falling.
• E)there is pressure on wages and prices to fall.

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Definitions:

Extended Family

A family group that extends beyond the nuclear family, including grandparents, aunts, uncles, and other relatives.

Nuclear Family

A family unit that comprises two parents and their children, considered the traditional family structure.

Extended Family

Extended family refers to a family unit that extends beyond the immediate nuclear family to include other relatives such as grandparents, aunts, uncles, and cousins.

Nuclear Family

A family group consisting of two parents and their children (biological or adopted), considered the basic social unit.