Figure 12.2

question 40

Multiple Choice

Figure 12.2:
-Using Figure 12.2,if Q₂ represents full employment,then a shift from AD₁ to:

• A) AD₂ takes the economy past full employment to equilibrium at point Y.
• B) AD₂ closes the GDP gap.
• C) AD₃ results in a full-employment equilibrium at point W.
• D) AD₃ takes the economy past full employment to equilibrium at point Z.

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Definitions:

Normal Probability

Describes the likelihood of an event occurring under a normal distribution, characterized by a symmetrical, bell-shaped curve.

Poisson Distribution

A discrete probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space, given a known constant rate of occurrence.

Standard Normal

A special case of the normal distribution used in statistical analysis where the mean is 0 and variance is 1.

Area

The extent or measurement of a surface, typically measured in square units.