Exhibit 10-8 Aggregate Demand and Supply in Exhibit 10-8

question 94

Multiple Choice

Exhibit 10-8 Aggregate demand and supply In Exhibit 10-8, when aggregate demand shifts from AD₄ to AD₅, the economy experiences:

• A)cost push-inflation.
• B)cost-pull inflation.
• C)demand-push inflation.
• D)demand-pull inflation.
• E)price-pull inflation.

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Definitions:

Side Effects

Unintended consequences of an action or decision that can be either beneficial or harmful.

Settlement Cost

The expenses incurred in the resolution of a dispute, transaction, or litigation, including legal fees, negotiation costs, and any payments made to settle the case.

Threat

a potential cause of harm or adverse effect on someone or something.

Raise Request

A formal or informal petition for an increase in salary or wages.