FIGURE 23-2 Refer to Figure 23-2

question 28

Multiple Choice

FIGURE 23-2 Refer to Figure 23-2.Which of the following events could cause the upward shift of the AS curve?

• A)a decrease in the price of raw materials
• B)a decrease in the world supply of oil as a result of a major hurricane
• C)improved quality of the national education system
• D)rapid technological advances in mass production
• E)an increase in consumption

Identify and explain the costs associated with inflation, including shoeleather costs and menu costs.

Describe how inflation affects interest rates through the Fisher effect.

Analyze the impact of inflation on wealth redistribution between creditors and debtors.

Understand the role of central banks in managing inflation and the money supply.

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Definitions:

Implied-In-Fact

A contract formed by non-verbal conduct, rather than explicit words, indicating that both parties intend to be bounded.

An Accounting

The process or act of maintaining financial records, summarizing transactions, and analyzing financial data to understand the financial status of an individual or organization.

Specific Performance

A legal remedy requiring a party to fulfill the exact terms of a contract, typically used when monetary damages are insufficient.

Duty of Notification

An agent’s obligation to inform the principal of the agent’s actions on the principal’s behalf and of all relevant information.