-The Figure Above Shows the Aggregate Demand, Short-Run Aggregate Supply

question 205

Multiple Choice

-The figure above shows the aggregate demand, short-run aggregate supply, and long-run aggregate supply curves for the U.S. economy. The economy is currently at point A. A cost-push rise in the price level will initially move the economy to point ________ and to point ________.

• A) E when aggregate demand increases; D when the money prices of raw materials rise
• B) C when the money prices of raw materials rise; D when aggregate demand increases
• C) F when the money prices of raw materials rise; E when aggregate demand increases
• D) B when aggregate demand decreases; C when the money prices of raw materials rise

---

Definitions:

Probable Cause

Probable cause is a legal standard that requires a reasonable basis for believing that a crime has been committed or that certain property is connected with a crime, used as a criterion for lawful search and arrest.

Merchants

Individuals or entities engaged in the buying and selling of goods or services for profit.

Conversion

The unauthorized act of possessing or using someone else's property as if it were one's own, which interferes with the owner's rights.

Dominion

Supreme authority or control over a domain, or the ownership and absolute right to use, enjoy, and dispose of property.