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:

Imported Tables

Digital or physical tables of data that are brought into a document or database from an external source.

Markup Percent

The rate at which the cost price of goods is marked up to determine their selling price.

Selling Price

The amount for which something is sold, determined by factors such as cost, demand, and competition.

Cost

The amount of money required to produce, purchase, or maintain a product or service.