In the Basic AD/AS Macro Model,which of the Following Events

question 62

Multiple Choice

In the basic AD/AS macro model,which of the following events would cause stagflation?

• A)a large decrease in wages
• B)a large increase in business confidence
• C)a large increase in the net tax rate
• D)a large increase in the price of raw materials
• E)a large increase in labour productivity

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Definitions:

Priority

The status of having precedence or more importance in comparison to other issues or tasks.

Unsecured Liabilities

Obligations or debts that are not protected by collateral, meaning the lender does not have claims on specific assets of the borrower if the debt is not repaid.

Non-Priority

A designation for debts or considerations that are deemed less important and hence are lower in the order of settlement or attention compared to priority ones.

Total Liabilities

The sum of all financial obligations (debts) owed by a company to external parties, recorded on its balance sheet.