In a Persisting Demand-Pull Inflation

question 177

Multiple Choice

In a persisting demand-pull inflation

• A) short-run aggregate supply decreases and aggregate demand increases.
• B) aggregate demand and short-run aggregate supply both decrease.
• C) aggregate demand increases and long-run aggregate supply decreases.
• D) None of the above answers are correct.

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Definitions:

Liability

A legal responsibility or obligation, often of a financial nature.

Ratification

The act of giving formal consent to a treaty, contract, or agreement, making it officially valid.

Void

A legal term indicating that a contract or agreement is null, invalid, and has no legal effect.

Disaffirm

The legal act of denying or rejecting a contract or agreement, especially by a party who was not competent to enter it at the time of agreement.