In the Basic AD/AS Macro Model,actual Inflation Is the Sum

question 116

Multiple Choice

In the basic AD/AS macro model,actual inflation is the sum of three separate components.They are

• A)accelerated inflation,expected inflation and output gap inflation.
• B)validated inflation,expected inflation,and output gap inflation.
• C)output gap inflation,wage-push inflation and demand inflation.
• D)output gap inflation,expected inflation and supply-shock inflation.
• E)accelerated inflation,demand inflation and supply inflation.

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Definitions:

Utility Function

A mathematical representation of how a set of choices maps to their associated levels of happiness or satisfaction for an individual or entity.

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The maximum price a consumer is willing to pay for a good or service, or the minimum price a seller is willing to accept.

BMWs

A brand of luxury vehicles produced by the German company Bayerische Motoren Werke AG, known for their performance and quality.

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Materials fed to cattle, including grass, grains, and sometimes supplements, to maintain or improve health and production.