Use the Following to Answer Questions

question 104

Multiple Choice

Use the following to answer questions:
-(Figure: AD-AS Model and the Short-Run Phillips Curve) Refer to Figure: AD-AS Model and the Short-Run Phillips Curve. If the central bank increases the money supply so that aggregate demand shifts from AD₁ to AD₂, then real GDP will increase by:

• A) zero.
• B) 2%.
• C) 4%.
• D) 6%.

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Definitions:

Midbrain

An area of the brainstem that plays a role in vision, hearing, motor control, sleep/wake, arousal (alertness), and temperature regulation.

Medulla

The inner region of an organ or tissue, especially the medulla oblongata which is part of the brainstem controlling vital autonomic functions, such as heartbeat and breathing.

Ascending Neural Pathway

The neural paths by which sensory information from the peripheral nervous system is sent to the central nervous system.

Perceptual Ambiguity

A situation in which a visual stimulus lacks a clear interpretation due to conflicting perceptions or because it can be seen in more than one way.