Exhibit 14-8 Aggregate Demand and Supply

question 87

Multiple Choice

Exhibit 14-8 Aggregate demand and supply

In Exhibit 14-8, 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.

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Definitions:

Purchasing History

Recorded information detailing past transactions made by a buyer, used for analyzing buying behavior or trends.

Psychographic

Relating to the study of personalities, values, opinions, attitudes, interests, and lifestyles.

Demographics

Statistical characteristics of a population such as age, gender, income, and education, used for marketing and policy planning.

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