Figure 35-9

question 444

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. Faced with the shift of the Phillips curve from PC1 to PC2, policymakers will

• A) ask whether the shift is temporary or permanent.
• B) be concerned with how people adjust their expectations of inflation as a result of the shift.
• C) face, as well, a decision as to whether to accommodate the shock.
• D) All of the above are correct.

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Definitions:

Motor Cortex

An area within the cerebral cortex dedicated to planning, controlling, and carrying out voluntary movements.

Phantom Limb Movements

Sensations where amputees feel that their missing limbs are still moving or have sensation.

Association Areas

Regions of the brain that integrate different types of information from sensory and motor areas to perform complex cognitive tasks.

Parietal

Relating to the parietal lobes of the brain, which are involved in processing sensory information such as touch, temperature, and body position.