If Aggregate Demand Increases and Expectations Regarding Inflation Remain Constant

question 8

Multiple Choice

If aggregate demand increases and expectations regarding inflation remain constant:

• A) the long- run Phillips curve shifts to the right.
• B) the economy moves left along the short- run Phillips curve.
• C) the short- run Phillips curve shifts to the right.
• D) the short- run Phillips curve shifts to the left.

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Definitions:

Folic Acid

A B-vitamin necessary for cell growth and metabolism, important for pregnant women to prevent neural tube defects in the fetus.

Hemoglobin

A protein in red blood cells that carries oxygen from the lungs to the rest of the body and returns carbon dioxide from the body to the lungs to be exhaled.

Mineral Supplement

A product taken orally that contains minerals which the body needs for good health but may not be consuming in sufficient amounts through diet alone.

Pica

An eating disorder characterized by the consumption of non-nutritive, non-food substances over a period of at least one month at an age where this behavior is considered developmentally inappropriate.