Figure 17-3 -In the Figure Above, Suppose We Are Working Under the Working

question 70

Multiple Choice

Figure 17-3
-In the figure above, suppose we are working under the assumption of the Lucas model. The Fed has been following an announced policy of "zero money growth for an indefinite period." Suddenly and without warning it produces positive money growth and a "money surprise." This would result in a movement between points

• A) A and C.
• B) A and B.
• C) D and B.
• D) D and A.
• E) A and D.

---

Definitions:

Outstanding Applicant

is a candidate for a position or role who excels beyond others in qualifications, experience, or suitability.

Mediocre Applicant

A candidate for a position who does not stand out due to average performance, skills, or qualifications.

Contrast Error

A cognitive bias in performance appraisals where the evaluation is based on comparison with other individuals instead of objective standards.

Pollyanna Effect

The inclination among individuals to recall positive events or information with greater precision than negative ones.