Figure 35-9

question 481

Multiple Choice

Figure 35-9. The left-hand graph shows a short-run aggregate-supply SRAS) curve and two aggregate-demand AD) curves. On the right-hand diagram, "Inf Rate" means "Inflation Rate."
-Refer to Figure 35-9. Subsequent to the shift of the Phillips curve from PC1 to PC2, the curve will soon shift back to PC1 if people perceive the

• A) increase in the inflation rate as a temporary aberration.
• B) economic boom as a temporary aberration.
• C) increase in the inflation rate as a sign of a new era of higher inflation.
• D) economic boom as a sign of a new era of higher economic growth.

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Definitions:

Narcolepsy

A sleep disorder characterized by uncontrollable episodes of falling asleep during the daytime.

Sleep Terror

A sleep disorder causing feelings of panic or dread, typically occurring during the first hours of stage 3-4 non-REM sleep and often remembered only partially.

Insomnia

A condition where one struggles to fall asleep, remain asleep, or achieve refreshing sleep.