The Solution to the Simultaneous Presence of Inflation and Unemployment

question 284

Multiple Choice

The solution to the simultaneous presence of inflation and unemployment is to implement policies that shift the

• A) aggregate demand curve to the right.
• B) aggregate demand curve to the left.
• C) short-run aggregate supply curve to the right.
• D) short-run aggregate supply curve to the left.

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Definitions:

GDP

Gross Domestic Product; the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Canada

A country in North America known for its vast landscapes, multicultural communities, and as a member of the Commonwealth.

Federal Government Budget Deficit

The financial situation that occurs when a government's expenditures exceed its revenues in a fiscal year.

Interest Rates

The charges levied by lenders on borrowers for the privilege of using the lender's money, expressed as a proportion of the borrowed amount per unit of time.