Refer to the Graph Above

question 15

Multiple Choice

Refer to the graph above. Assume that the economy is in initial equilibrium where AD₁ intersects AS_LR1. If the economy experiences a change in technology that increases productivity and resources, then real-business-cycle theory would suggest that this macroeconomic instability would eventually produce a new equilibrium at point:

• A) B
• B) C
• C) D
• D) E

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Definitions:

Low Frequencies

Refers to sounds or signals that have a relatively small number of cycles or oscillations per second; in audio, it typically describes bass sounds.

Basilar Membrane

The basilar membrane is a key structure in the cochlea of the inner ear, playing a crucial role in the process of auditory transduction by vibrating in response to sound and facilitating hearing.

Place Theory

A theory explaining how the inner ear registers the frequency of sounds, based on the location along the cochlea’s basilar membrane that sound waves peak.

Cones

Visual receptors that respond to greater light intensities and give rise to chromatic (color) sensations.