When a Financial Friction Is Added to the Short-Run Model

question 13

Multiple Choice

When a financial friction is added to the short-run model it:

• A) shifts the MP curve up
• B) shifts the IS down
• C) shifts the AS curve down
• D) is represented by a movement along the MP curve
• E) is represented by a movement along the IS curve

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Definitions:

Target Heart-rate

The optimal heart rate zone for maximizing cardiovascular benefits during exercise, usually a percentage of your maximum heart rate based on age.

Maximum Heart Rate

The highest number of heartbeats per minute during maximum physical exertion.

Rockport Walk Test

A fitness test designed to estimate an individual's aerobic capacity and cardiovascular fitness by measuring the time it takes to walk a mile as fast as possible.

Cardiorespiratory Endurance

The ability of the body's circulatory and respiratory systems to supply fuel and oxygen during sustained physical activity.