Figure 35-9

question 46

Multiple Choice

Figure 35-9.The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves.On the right-hand diagram,"Inf Rate" means "Inflation Rate."
-Refer to Figure 35-9.Subsequent to the shift of the Phillips curve from PC₁ to PC₂,the curve will soon shift back to PC₁ if people perceive the

• A)increase in the inflation rate as a temporary aberration.
• B)economic boom as a temporary aberration.
• C)increase in the inflation rate as a sign of a new era of higher inflation.
• D)economic boom as a sign of a new era of higher economic growth.

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Definitions:

Negotiate

The process of discussing terms to reach a mutual agreement in transactions, contracts, or disputes.

Implied Warranty

A legal assumption that the goods sold meet certain quality standards, including that they are fit for the standard purposes for which such goods are sold.

Express Warranty

A clearly stated promise or guarantee regarding the condition or performance of a product or service.

Warranty Of Trade Usage

A guarantee implied in a transaction, based on the customary practices and standards in a particular industry.