Figure 18-2 -Refer to Figure 18-2.In the Dynamic Model of AD-AS in of AD-AS

question 82

Multiple Choice

Figure 18-2
-Refer to Figure 18-2.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 no fiscal or monetary policy is pursued,then at point B

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

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Definitions:

Dangerous

Involving potential risk or harm to safety, health, or well-being.

Hypnosis

A trance-like state of focused attention and heightened suggestibility, often used for therapeutic purposes to modify behaviors, perceptions, and physiological responses.

Immoral

Acting in ways that are considered by society to be wrong, unethical, or unjust.

Hypnotized Subjects

Individuals who are in a state of hypnosis, characterized by increased suggestibility, relaxation, and altered consciousness.