Figure 36-8

question 36

Multiple Choice

Figure 36-8.The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves.On the right-hand diagram,"Inf Rate" means "Inflation Rate."

-Refer to Figure 36-8.The shift of the aggregate-supply curve from AS₁ to AS₂

• A)results in a more favorable trade-off between inflation and unemployment.
• B)results in a more favorable trade-off between inflation and the growth rate of real GDP.
• C)represents an adverse shock to aggregate supply.
• D)represents a favorable shock to aggregate supply.

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Definitions:

Remembering

The process by which past experiences are recalled or retrieved from memory.

Prospective Memory

It represents the part of memory that deals with recalling planned activities or intentions at a predetermined time in the future.

Odor

A smell produced by one or more volatilized chemical compounds that are generally found in low concentrations.

Context-Dependent Memory

The theory that information learned in a particular situation or environment is better remembered when in that same environment.