In a Stagflation Phase, a Decrease in Short-Run Aggregate Supply

question 41

Multiple Choice

In a stagflation phase, a decrease in short-run aggregate supply will generate

• A) an increase in the inflation rate and in the unemployment rate.
• B) an increase in the inflation rate and a decrease in the unemployment rate.
• C) an increase in the inflation rate with no change in the unemployment rate.
• D) a decrease in the inflation rate and an increase in the unemployment rate.

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Definitions:

UAA

A stop codon in the genetic code that signals the end of a protein-coding sequence in mRNA transcription.

Messenger RNA

A molecule that carries genetic information from DNA to the ribosome, where it directs protein synthesis.

RNA Polymerases

Enzymes that are responsible for transcribing RNA from a DNA template, playing a key role in the process of gene expression.

Transcription

The process by which the genetic information in DNA is copied into messenger RNA (mRNA) for protein synthesis.