Figure 16-5 -Refer to Figure 16-5.In the Dynamic Model of AD-AS in of AD-AS

question 108

Multiple Choice

Figure 16-5
-Refer to Figure 16-5.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:

Psychoanalysis

is a set of psychological theories and therapeutic techniques related to the study of the unconscious mind, developed by Sigmund Freud.

Philosophy

The study of fundamental nature of knowledge, reality, and existence.

Representation

An act of depicting or symbolizing something, often through language or imagery.

Cognitive Theories

Cognitive theories are psychological frameworks that emphasize the importance of mental processes in understanding behavior, such as how people perceive, think, understand, and remember.