Use the Following to Answer Questions

question 25

Multiple Choice

Use the following to answer questions :
Figure: AD-AS Model and the Short-Run Phillips Curve
-(Figure: AD-AS Model and the Short-Run Phillips Curve) Look at AD-AS Model and the Short-Run Phillips Curve. If the central bank decreases the money supply so that aggregate demand shifts from AD₂ to AD₁, then the unemployment rate will be:

• A)zero.
• B)2%.
• C)4%.
• D)6%.

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Definitions:

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Socioeconomic Status

A measure of an individual's or family's economic and social position relative to others, based on income, education, and occupation.

Life Stressors

Events or conditions in one's environment that cause stress or discomfort.

Schizophrenia

A chronic brain disorder characterized by delusions, hallucinations, and other cognitive difficulties.