Exhibit 14-4 Aggregate Supply and Demand Curves

question 97

Multiple Choice

Exhibit 14-4 Aggregate supply and demand curves

The increase in the price level as the economy moves from E₁ to E₂ in Exhibit 14-4 represents:

• A) cost-push inflation.
• B) demand-shock inflation.
• C) wage push inflation.
• D) demand-pull inflation.

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Definitions:

Bonds Payable

Long-term liabilities representing money owed by an entity to bondholders, to be repaid at a future date with interest.

Exchange Rates

The rate at which one currency can be exchanged for another, influencing international trade and finance operations.

Foreign Subsidiary

A company that is owned or controlled by another company, located in a country different from the parent company.

Sales

The total revenue earned from goods sold or services provided over a certain period of time.