With Demand-Pull Inflation in the Extended AD-AS Model, There Is

question 14

Multiple Choice

With demand-pull inflation in the extended AD-AS model, there is

• A)a decrease in aggregate demand and a decrease in unemployment that eventually increases nominal wages.
• B)an increase in aggregate demand and a decrease in unemployment that eventually decreases nominal wages.
• C)an increase in aggregate demand and an increase in unemployment that eventually decreases nominal wages.
• D)an increase in aggregate demand and a decrease in unemployment that eventually increases nominal wages.

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Definitions:

Assembly-Line Employee

An individual who works in a manufacturing process or factory setting, responsible for performing specific tasks as products move along the production line.

Foreman

A worker, especially in manual industries, who supervises and directs other workers.

Compelled

A state of being driven or urged forcefully or irresistibly to do something.

Differential Association

A theory that suggests individuals learn criminal behavior from their interactions and communications with others.