-Consider the IS-MP Model in Figure 14

question 30

Multiple Choice

-Consider the IS-MP model in Figure 14.2 above;starting from the long-run equilibrium,the burst of the housing bubble and the appropriate fed response,without a risk premium,can be shown as a movement from point __________ to point __________ and the economy is in __________.

• A)c;e;its long-run equilibrium
• B)d;b;its long-run equilibrium
• C)b;a;an expansion
• D)a;d;a recession
• E)a;d;an expansion

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Definitions:

Socially Diverse

characterized by a wide variety of cultures, ethnicities, languages, and social backgrounds within a community or society.

Biodiversity

the variety and variability of life forms within a given ecosystem, region, or the entire Earth, including the diversity of species, genes, and ecosystems.

Plant and Animal Species

Various types of living organisms belonging to the kingdoms of Plantae and Animalia, each distinguished by unique characteristics and genetic makeup.

Evolution

The process through which different kinds of living organisms are believed to have developed from earlier forms during the history of the earth.