In a Situation of Stagflation, the Use of Aggregate Demand-Oriented

question 28

Multiple Choice

In a situation of stagflation, the use of aggregate demand-oriented macro policy to address the problem of unemployment would, at least in the short run, __________ the price level and __________ the level of output in the economy.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decrease

---

Definitions:

Decree Of Bankruptcy

A formal declaration by a court that declares a person or organization as insolvent, unable to pay their debts.

Liquidated Damages

A predetermined amount of money stipulated in a contract that one party will pay to the other in case of a breach.

Penalty Clause

A contractual provision that imposes a financial penalty on a party for a breach of contract or failure to meet specific terms.

Better Title

A legal principle indicating that among multiple claims to ownership or rights, one claim is superior or more legally valid than the others.