The Following Image Shows the Aggregate Demand and Aggregate Supply

question 59

Multiple Choice

The following image shows the aggregate demand and aggregate supply curves of an economy.In the graph below,the rise in the price levels from P₁ to P₂ is a result of:

• A)cost-pull inflation.
• B)cost-push inflation.
• C)demand-push inflation.
• D)demand-pull inflation.
• E)induced inflation.

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Definitions:

Mathematical Operations

Basic procedures, including addition, subtraction, multiplication, and division, used in mathematics to calculate and solve problems.

Schema

A cognitive framework or concept that helps organize and interpret information in the brain.

Assimilation

The process of absorbing new information into our existing cognitive frameworks, often discussed in the context of learning and cultural integration.

Accommodation

The process of adjusting or adapting one's cognitive structures to incorporate new information.