Suppose This Year's Inflation Rate Is 4 Percent, Which Is

question 26

Multiple Choice

Suppose this year's inflation rate is 4 percent, which is greater than the 2 percent everyone expected. Which of the following is true?

• A) real GDP will increase
• B) the unemployment rate will probably rise
• C) potential output will remain the same
• D) the short-run aggregate supply curve will shift to the right
• E) there will be a leftward movement along a given short-run aggregate supply curve

---

Definitions:

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Budgeting

The process of creating a plan to spend your money, delineating how the funds will be allocated over a specific time period.

Spending Variance

The difference between the actual amount spent and the budgeted or planned amount, typically related to operational budgets.

Food And Supplies

Items and materials used in the production or service of food industry operations, including raw ingredients and operational supplies.