Figure 35-8 Use This Graph to Answer the Questions Below

question 57

Multiple Choice

Figure 35-8
Use this graph to answer the questions below.
-Refer to figure 35-8.If the economy starts at 5% unemployment and 5% inflation then if the Federal Reserve pursues a contractionary monetary policy,in the short run the economy moves to

• A)3% unemployment and 5% inflation.In the long run the economy moves to 5% unemployment and 5% inflation.
• B)3% unemployment and 5% inflation.In the long run the economy moves to 5% unemployment and 3% inflation.
• C)7% unemployment and 3% inflation.In the long run the economy moves to 5% unemployment and 5% inflation.
• D)7% unemployment and 3% inflation.In the long run the economy moves to 5% unemployment and 3% inflation.

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Definitions:

Differential Organization

involves the varying structures and functions within an organization that contribute to its overall operation.

Distinct Group

A collection of individuals who are differentiated from others by unique characteristics, values, or behaviors.

Concentric Zone Model

A sociological model that describes urban land use in concentric circles, theorizing how social groups are spatially arranged in cities.

Urban Growth

The process by which cities expand in terms of population and infrastructure, often associated with economic development and migration from rural areas.