A Decrease in AS Will Trigger Less Inflation Under Which

question 113

Multiple Choice

A decrease in AS will trigger less inflation under which of the following conditions?

• A)AD is relatively steep.
• B)AD is relatively flat.
• C)AS is relatively steep.
• D)AS is relatively flat.

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Definitions:

90-Day Note

A short-term debt obligation that matures or is due to be paid 90 days after its issuance.

Accrued Interest

Interest that has been incurred but not yet paid, typically recorded as an expense for the period it relates to.

Year-End

The conclusion of an accounting period, typically the end of the fiscal or calendar year, when companies finalize their financial statements.

60-Day Note

A financial instrument or a loan agreement that requires repayment of the principal amount along with any accrued interest within 60 days.