(Figure: Demand Shock 0) When the Economy Moves from a to B

question 77

Multiple Choice

(Figure: Demand Shock 0) When the economy moves from A to B, as shown in the graph on the left, how will inflation and the unemployment rate be affected, as shown in the graph on the right?

• A) There will be movement on the curve, so that inflation increases and unemployment decreases.
• B) There will be movement on the curve, so that inflation decreases and unemployment increases.
• C) The curve will shift left, so that both unemployment and inflation decrease.
• D) The curve will shift right, so that both unemployment and inflation increase.

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Definitions:

Credit Postings

Entries made on the credit side of an account, indicating an increase in liabilities, revenue, or equity and a decrease in assets.

Debit Postings

Entries made on the left side of a ledger account, indicating an increase in assets or expenses or a decrease in liabilities, equity, or revenue.

Account Balance

An account balance refers to the amount of money held in a financial repository, typically a bank account, at any given moment.

Painting Equipment

Assets used in the operation of a painting business or for painting activities, classified as long-term if they provide benefits over multiple periods.