The Essential Feature of a Stagflation Phase Is

question 105

Multiple Choice

The essential feature of a stagflation phase is

• A) a shift in the short run aggregate supply curve to the right.
• B) changes in expectations about the price level.
• C) falling unemployment and rising inflation.
• D) a shift of the LRAS curve to the right.

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Definitions:

Yield

The return in terms of income from an investment, like dividends or interest earned by possessing a specific security.

Compound-interest

Interest computed on both the original sum invested or loaned, as well as on the interest that has been added to this principal amount over earlier periods.

GIC

A Guaranteed Investment Certificate, a Canadian investment that offers a guaranteed rate of return over a fixed period.

Investment

The allocation of resources, such as time, money, or effort, in hope of generating a future benefit or profit.