Figure 26-12 -Refer to Figure 26-12. in the Dynamic AD-AS Model, the AD-AS

question 206

Multiple Choice

Figure 26-12
-Refer to Figure 26-12. In the dynamic AD-AS model, 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 policy. This will result in

• A) unemployment rates higher than what would occur if no policy had been pursued.
• B) inflation rates higher than what would occur if no policy had been pursued.
• C) potential real GDP levels lower than what would occur if no policy had been pursued.
• D) real GDP levels higher than what would occur if no policy had been pursued.

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Definitions:

Bone Density

A measurement indicating the amount of mineral matter per square centimeter of bones, used in assessing osteoporosis and fracture risk.

Osteopenia

A condition characterized by lower than normal bone density, which can precede osteoporosis.

Osteomyelitis

An infection of bone, which can lead to bone damage and loss if untreated.

Periosteum

The dense layer of vascular connective tissue enveloping the bones except at the surfaces of the joints.