Inflationary Pressures That Result from a Rightward Shift in the AD

question 7

Multiple Choice

Inflationary pressures that result from a rightward shift in the AD curve

• A)cause Y to fall below Y*.
• B)will worsen any existing unemployment problem.
• C)will initiate a wage-price spiral.
• D)will eventually subside unless accompanied by continual increases in the money supply.
• E)will permanently increase output.

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Definitions:

Slack Adjuster

A device in a braking system used for adjusting the brakes to compensate for wear.

Service Diaphragm

A flexible membrane in a device or pump that moves in response to pressure changes, used in various applications including brakes.

Treadle Valve

A treadle valve regulates air pressure in a pneumatic system, often found in heavy vehicles like trucks and buses, controlling braking force by the amount of pressure applied by the driver's foot.

Metered Out

In fluid dynamics and pneumatics, refers to the controlled release or distribution of a fluid at a measured rate from a system.