Figure 12.6: IS-MP Curve

question 109

Multiple Choice

Figure 12.6: IS-MP Curve
-Start from any equilibrium in Figure 12.6 to answer the following question. In 1980, U.S. inflation hit about 14 percent; Federal Reserve chairman ________ engineered a decline in inflation by ________, shown in the figure as movement from ________.

• A) Volcker; raising inflation rates; point b to c
• B) Bernanke; raising interest rates; point b to d
• C) Volcker; lowering interest rates; point c to b
• D) Volcker; raising interest rates; point b to c
• E) Greenspan; lowering interest rates; point a to b

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Definitions:

Vestibular System

The sensory system responsible for providing our brain with information about motion, head position, and spatial orientation; it also aids in maintaining balance.

Vestibular System

The sensory system that contributes to balance and spatial orientation; it includes the parts of the inner ear and brain that process the sensory information involved with controlling balance and eye movements.

Maintain Balance

The ability of an organism to keep their body in equilibrium or stable, whether in motion or standing still.

Frequency

The rate at which something occurs over a particular period of time or in a given sample.