How Are Aggregate Supply and Stagflation Related

question 112

Multiple Choice

How are aggregate supply and stagflation related?

• A)Stagflation usually causes an adverse shift in aggregate supply.
• B)An adverse supply shift usually causes stagflation.
• C)Stagflation only follows inflation, with no relation to aggregate supply.
• D)There is no relationship between the two.

---

Definitions:

Antidepressants

Medications designed to treat depressive disorders by correcting chemical imbalances of neurotransmitters in the brain.

Cognitive Therapy

A form of psychotherapy that emphasizes the restructuring of negative and distorted patterns of thought to alter emotions and behavior.

Drug Therapy

The treatment of diseases or disorders by administering pharmaceutical drugs.

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning techniques.