Figure 27-2 -Refer to Figure 27-2.In the Dynamic Model of AD-AS in Model

question 78

Multiple Choice

Figure 27-2

-Refer to Figure 27-2.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 no fiscal or monetary policy is pursued,then at point B

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

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Definitions:

Social Experiences

Interactions with other individuals or groups that contribute to one's understanding of society and social behaviors.

Slow-To-Warm-Up Temperament

A temperament style characterized by caution and hesitancy in new situations or environments, but gradually becoming more comfortable with experience.

Anxious Temperament

A predisposition to respond with anxiety to uncertain or challenging situations.

Easy Temperament

A child's behavioral style characterized by regularity, adaptability, and a generally positive mood.