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:

Distribution Inventory

Stocks of goods and materials held at various points in a supply chain, intended for downstream distribution.

Physical Inventory

The process of counting and verifying all physical goods and materials in stock by a business.

Shipping Costs

The expenses involved in transporting goods from one location to another, including freight charges, packaging, and handling fees.

Diseconomies of Scale

An economic concept where an increase in production leads to a rise in average costs per unit due to inefficiencies.