Figure 26-11 -Refer to Figure 26-11.In the Dynamic Model of AD-AS in of AD-AS

question 99

Multiple Choice

Figure 26-11
-Refer to Figure 26-11.In the dynamic model of AD-AS in the figure above,if the economy is at point A in year 1 and is expected to go to point B in year 2,and the Federal Reserve pursues no policy,then at point B

• A)there is pressure on wages and prices to rise.
• B)the unemployment rate is very,very low.
• C)firms are operating above their normal capacity.
• D)the economy is below full employment.
• E)incomes and profits are rising.

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Definitions:

Public Opinion

The collective attitudes or beliefs of the adult population on various issues, influenced by cultural, societal, and personal factors.

Constitutional Convention

A formal gathering for the purpose of creating or amending a constitution.

Delegates

Individuals chosen to represent others, typically in a conference or a convention; in politics, they often have the authority to vote on behalf of the group they represent.

Upper Class

A social group at the top of a societal hierarchy, often possessing significant wealth, power, and influence.