The Following Image Shows the Aggregate Demand and Aggregate Supply

question 59

Multiple Choice

The following image shows the aggregate demand and aggregate supply curves of an economy. In the graph below, the rise in the price levels from P₁ to P₂ is a result of:

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

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Government Affairs

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A stake or concern in financial investments or decisions, often implying that the outcome could affect one's personal or organizational wealth.

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