If Demand- Pull Inflation Occurs When the Economy Is Already

question 118

Multiple Choice

If demand- pull inflation occurs when the economy is already at potential GDP, then, following the initial increase in aggregate demand, the

• A)LAS curve shifts rightward.
• B)SAS curve shifts leftward.
• C)SAS curve shifts rightward.
• D)LAS curve shifts leftward.

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Definitions:

Derivative Action

A lawsuit brought by a corporation's shareholder on behalf of the corporation against a third party, often an insider of the corporation.

Independent Directors

Board members who do not have a material or pecuniary relationship with the company or its management, ensuring unbiased decision-making.

Corporation Interest

The financial or ownership stake that individuals or entities have in a corporation, often represented by shares of the company's stock.

Repurchase

The act of buying back previously sold stock or securities by the company that issued them.