The Three Figures Below Show the Phases of a Disinflation

question 92

Multiple Choice

The three figures below show the phases of a disinflation.In part (i) ,the economy is experiencing a sustained inflation at E₁. FIGURE 29-4 Refer to Figure 29-4,part (ii) .The upward shift of the AS curve in Phase 2 is normally caused by

• A)workers accepting a reduction in their wages.
• B)an increase in the productivity of workers.
• C)the Bank of Canada engaging in an expansionary monetary policy.
• D)an increase in the unemployment rate.
• E)inflationary expectations that cause wages to continue rising.

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Definitions:

Hormones

Chemical messengers secreted by endocrine glands that regulate various functions in the body, including growth, metabolism, and mood.

Gonads

The reproductive organs in animals and humans that produce gametes; for males, these are the testes, and for females, the ovaries.

Perceptions

The process by which individuals interpret sensory information, leading to a unique understanding and view of the world around them.

Alcohol

A psychoactive substance commonly found in beverages such as beer, wine, and spirits, known for its effects on the central nervous system and potential for abuse and addiction.