Figure 118 Alt Text for Figure 11

question 113

Multiple Choice

Figure 11.8 Alt text for Figure 11.8: In figure 11.8, a graph comparing real GDP and price level.
Long description for Figure 11.8: The x-axis is labelled, real GDP (trillions of 2000 dollars) , and the y-axis is labelled, price level (GDP deflator, 2000 = 100) .3 lines are shown; AD, LRAS, SRAS.Line AD begins in the top left corner and slopes down to the bottom center.Line SRAS begins in the bottom left corner and slopes up to the top right corner.Line LRAS is perpendicular to the x-axis, and intersects the lines AD and SRAS.The point of intersection of the lines AD and SRAS is marked as A.
-Refer to Figure 11.8.In the figure above, if the economy is at point A, the appropriate monetary policy by the Bank of Canada would be to

• A)lower interest rates.
• B)raise interest rates.
• C)lower income taxes.
• D)raise income taxes.
• E)increase spending.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.