Use the Following to Answer Questions

question 168

Multiple Choice

Use the following to answer questions:
-(Figure: AD-AS Model and the Short-Run Phillips Curve) Refer to Figure: AD-AS Model and the Short-Run Phillips Curve. If the central bank increases the money supply so that aggregate demand shifts from AD₁ to AD₂, then the inflation rate will be:

• A) zero.
• B) 2%.
• C) 4%.
• D) 6%.

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Definitions:

Value Orientation

involves the principles and beliefs that individuals consider important, guiding their behavior and decisions.

Traditional Values

Beliefs and moral codes that are passed down from generation to generation within a culture or society.

Minimum Sufficiency

The lowest level of effort or input required to achieve a desired outcome or effect.