Which of the Following Statements About Aggregate Supply Is Correct

question 32

Multiple Choice

Which of the following statements about aggregate supply is correct?

• A)Shifts in aggregate supply can cause stagflation
• B)Shifts in aggregate supply can cause a fall in output and a rise in prices
• C)Shifts in aggregate supply can cause a recession
• D)All of the above

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Definitions:

Deferral Period

A set period during which payments of principal or interest on a loan are temporarily delayed.

Perpetual Scholarship

A scholarship fund that provides financial aid indefinitely, usually through an endowment that generates interest used to fund the scholarship.

Compounded Monthly

This refers to the calculation and addition of interest to the principal sum of a loan or deposit on a monthly basis.

Equal Monthly Payments

Fixed payments made every month, as in a loan or mortgage, ensuring that the loan is paid off over a specified period.