It Is Difficult to Eliminate a Constant Inflation

question 48

Multiple Choice

It is difficult to eliminate a constant inflation.A major reason it is so difficult is that inflationary expectations

• A)make it impossible to stop the rightward shift of the AD curve.
• B)make it impossible to reduce aggregate expenditure.
• C)keep shifting the AS curve upward.
• D)keep shifting the AS curve downward.
• E)cannot be influenced by monetary policy.

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its service life, representing how much of an asset's value has been used up over time.

Accounts Receivable

Unpaid amounts from customers for goods or services that a business has already provided.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from total revenue.

Depreciation Expense

The allocated amount of the cost of an asset, spread out over the time it is expected to be used, reflecting its consumption, wear and tear, or obsolescence.