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

question 12

Multiple Choice

Figure 15-11
-Refer to Figure 15-11.In the dynamic model of AD-AS in the figure above,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 policy.This will result in

• A)unemployment rates higher than what would occur if no policy had been pursued.
• B)inflation higher than what would occur if no policy had been pursued.
• C)real GDP lower than what would occur if no policy had been pursued.
• D)short-term interest rates higher than what would occur if no policy had been pursued.

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Definitions:

Grand Juries

A group of citizens tasked with determining whether there is enough evidence to indict a suspect and proceed to trial.

Guilt

A feeling of responsibility or remorse for some offense, crime, wrong, etc., whether real or imagined.

Probable Cause

Any essential element and/or standard by which a lawful officer may make a valid arrest, conduct a personal or property search, or obtain a warrant.

Miranda Rights

A set of warnings given by police in the United States to criminal suspects during arrest, informing them of their right to silence and legal representation.