Without a Change in Target Inflation, Anything That Shifts the Aggregate

question 64

Multiple Choice

Without a change in target inflation, anything that shifts the aggregate demand curve to the right will cause:

• A) a temporary increase in output.
• B) a permanent reduction in inflation.
• C) a temporary decrease in inflation.
• D) an increase in output in the long run.

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Definitions:

Testing Effect

The enhanced memory performance and retention resulting from the act of retrieving information during a test, as opposed to simply re-reading or reviewing material.

Enhanced Memory

An improvement in the ability to recall or recognize information compared to normal memory function.

Automatic Processing

Automatic processing involves the unconscious encoding of incidental information such as space, time, and frequency, and well-learned information.

Visual Scene

The array of objects, spaces, and details visible in a specific field of view at any given moment.