Refer to the Above Diagram

question 71

Multiple Choice

Refer to the above diagram.The initial aggregate demand curve is AD₁ and the initial aggregate supply curve is AS₁.Demand-pull inflation in the short run is best shown as:

• A)a shift of the aggregate demand curve from AD₁ to AD₂.
• B)a move from d to b to a.
• C)a move directly from d to a.
• D)a shift of the aggregate supply curve from AS₁ to AS₂.

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Definitions:

Sudden Travel

The act of quickly moving or being moved from one location to another without prior planning or preparation.

Magnification

In cognitive psychology, it refers to a distortion where an individual exaggerates the negatives or minimizes the positives of a situation.

Beck

Beck commonly refers to Aaron T. Beck, a psychiatrist known for developing cognitive therapy, a foundation for cognitive-behavioral therapy.

Cognitive Psychologist

A professional in psychology who studies mental processes such as "attention, language use, memory, perception, problem solving, creativity, and thinking."