Inflation Occurs Over Time as a Result of

question 253

Multiple Choice

Inflation occurs over time as a result of

• A) aggregate demand increasing faster than long- run aggregate supply.
• B) long- run aggregate supply increasing faster than short- run aggregate supply.
• C) long- run aggregate supply increasing faster than aggregate demand.
• D) decreases in aggregate demand.

---

Definitions:

Marketable Discharge Permits

Permits that allow holders to emit a certain amount of pollutants into the environment, which can be bought, sold, or traded, creating an economic incentive for reducing emissions.

Mercury Discharge

The release or emission of mercury, a toxic heavy metal, into the environment, often from industrial sources.

National Environmental Policy Act

A law enacted to ensure that the government gives proper consideration to the environmental impact of major federal actions that could significantly affect the environment.

Council on Environmental Quality

A federal agency within the Executive Office of the President that advises on environmental policies and strategies.