-An Economy Is at Potential GDP and the Price Level

question 38

Multiple Choice

-An economy is at potential GDP and the price level is 100 in the figure above. If aggregate demand unexpectedly increases so that the aggregate demand curve shifts to AD₁, in the short run the inflation rate is

• A) 0 percent a year.
• B) 10 percent a year.
• C) 20 percent a year.
• D) More than 20 percent a year.

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Definitions:

Portion-controlled

A dietary approach that involves regulating the amount of food served or consumed, often for weight management or health reasons.

Snack Items

Small portions of food typically consumed between regular meals, often for immediate satisfaction of hunger.

Food Manufacturer

A company that processes raw ingredients into finished food products for consumer consumption.

Sides

Refers to supplementary items often served alongside a main dish, commonly used in food service and menu planning.