Figure 15-11 -Refer to Figure 15-11.In the Dynamic Model of AD-AS in of AD-AS

question 183

Multiple Choice

Figure 15-11
-Refer to Figure 15-11.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 the Federal Reserve pursues no policy,then at point B

• A)there is pressure on wages and prices to rise.
• B)the unemployment rate is very,very low.
• C)firms are operating above their normal capacity.
• D)the economy is below full employment.
• E)incomes and profits are rising.

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Definitions:

Pyruvic Acid

A colorless liquid with a sour taste; a key intermediate in several metabolic pathways, including glycolysis.

Lactic Acid

A waste product that must be released from the cell. It is produced when a cell is low on oxygen and converts pyruvic acid.

Myoglobin

A protein in muscle cells that stores oxygen and gives muscle tissue its red color.

Lactic Acid

An organic acid produced in muscles during intense activity, responsible for the sensation of muscle soreness.