The Economy in 2008

question 34

Multiple Choice

The Economy in 2008
In the first half of June 2008 the effects of a housing and financial crisis and an increase in world prices of oil and foodstuffs were affecting the economy.
-Refer to The Economy in 2008.Given the effects of the financial and housing crisis on the price level and output and the effects of increased world commodity prices on the price level and output,the aggregate demand and aggregate supply model tells us that

• A)output rises and the price level falls.
• B)output may rise,fall or stay the same and the price level rises.
• C)output falls and the price level may rise,fall or stay the same.
• D)None of the above is correct.

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Definitions:

Chunk

A stimulus or group of stimuli that are perceived as a discrete piece of information.

Acoustic Code

A memory code based on the sound of the item to be remembered.

Musical Composition

Musical composition is the process of creating or writing a new piece of music, including the arrangement of melodies, harmonies, and rhythms.

Tip-Of-The-Tongue Phenomenon

A common cognitive experience where a person is unable to fully recall a word or name, but has partial recall and a strong feeling that retrieval is imminent.