-Refer to the Above Figure

question 13

Multiple Choice

-Refer to the above figure. Unexpected expansionary monetary policy has caused the aggregate demand curve to shift to AD2. In the long run

• A) the unemployment rate will be the same rate as before the expansionary monetary policy.
• B) the unemployment rate will be larger than the rate before the expansionary monetary policy.
• C) the unemployment rate will be smaller than the rate before the expansionary monetary policy.
• D) the unemployment rate can increase or decrease depending upon how much the LRAS will shift.

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Definitions:

Hemoglobin

A protein in red blood cells that carries oxygen from the lungs to the rest of the body.

Binding

The process of forming chemical bonds between atoms or molecules to create more complex compounds or structures.

Oxygen/Hemoglobin Equilibrium

The process by which oxygen binds to hemoglobin in the blood and is transported to tissues, balanced by oxygen's release from hemoglobin.

CO

Carbon monoxide (CO) is a colorless, odorless, and toxic gas produced by incomplete combustion of carbon-containing materials.