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.

---

Definitions:

Labor Productivity

A measure of economic performance that compares the amount of goods and services produced with the inputs used to produce them, particularly labor hours.

Centralized Inventory

An approach in inventory management where all stock is kept in a single location, simplifying operations and potentially reducing costs.

Lead Times

The amount of time that passes from the start of a process until its completion.

Slotting

The activity of determining the most efficient placement for goods within a warehouse to optimize picking and storage.