Figure 35-1

question 58

Multiple Choice

Figure 35-1.The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves.On the right-hand diagram,U represents the unemployment rate.
-Refer to Figure 35-1.Suppose points F and G on the right-hand graph represent two possible outcomes for an imaginary economy in the year 2012,and those two points correspond to points B and C,respectively,on the left-hand graph.Also suppose we know that the price index equaled 120 in 2011.Then the numbers 115 and 130 on the vertical axis of the left-hand graph would have to be replaced by

• A)155 and 175,respectively.
• B)138 and 156,respectively.
• C)137.5 and 154.75,respectively.
• D)135 and 150,respectively.

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Definitions:

Seven Months

A period of time equal to approximately 210 days or seven calendar months.

Amygdala

A region of the brain involved in processing emotions, fear responses, and reward.

Brain

The complex central organ of the nervous system responsible for control and coordination of bodily activities and the interpretation of sensory information.

Fear

An emotional response to perceived threats or danger, often resulting in a fight or flight reaction.