If the Aggregate Demand Curve Shifts Faster Than the Long-

question 317

Multiple Choice

If the aggregate demand curve shifts faster than the long- run aggregate supply curve, then _ occurs.

• A) leftward; economic growth
• B) rightward; inflation
• C) leftward; inflation
• D) rightward; economic growth

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Definitions:

Accounting Basis

The method in which income and expenses are recognized in the accounts; common methods include cash basis and accrual basis accounting.

Computation

The process of performing mathematical calculations or processing data using algorithms, often carried out by computers.

Average Accounting Return

A financial ratio that reflects the average net income that a project or investment generates compared to its initial cost or average investment.

Arbitrary Value

An arbitrary value is a value assigned based on discretion or judgment rather than from an objective calculation or measurement.