Consider the Following Statement: "President Carter Expressed Concern About Reports

question 1

Multiple Choice

Consider the following statement: "President Carter expressed concern about reports of rising inflation but insisted the economy is on the right course. He pointed to recent reductions in unemployment as evidence that his economic policies are working." Which of the following could have caused this phenomenon?

• A) Increase in government spending that shifted the aggregate demand curve to the right.
• B) Increase in money supply which lowered interest rates and shifted the short-run aggregate supply curve to the right.
• C) Economic agents revising their expectations about the price level resulting in the short-run aggregate supply curve shifting to the left.
• D) Expansionary fiscal and monetary policies that shifted the long-run aggregate supply curve to the right.

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Definitions:

Farm Mechanization

The process of using agricultural machinery and equipment to increase the efficiency of farming operations and productivity.

Disk Plow

An agricultural tool featuring a disk-shaped blade used for plowing to turn over the soil, particularly useful in tough or sticky soil conditions unlike traditional plows.

Fordlandia

A failed industrial town established by American industrialist Henry Ford in the Brazilian Amazon in the 1920s, intended to secure a source of cultivated rubber for his automobile manufacturing.

Rubber Supply

The availability or provision of rubber, a significant material used in various industries, which can be natural or synthetic and is vital for manufacturing numerous products.