Which of the Following Would Cause Inflation

question 39

Multiple Choice

Which of the following would cause inflation?

• A) The short-run aggregate supply curve shifts rightward.
• B) The long-run aggregate supply curve shifts rightward.
• C) The aggregate demand curve shifts rightward.
• D) The aggregate demand curve shifts leftward.

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Definitions:

Combustion

A high-temperature exothermic chemical reaction between a fuel and an oxidant, producing heat and usually light in the form of flame.

Chemical Equation

A symbolic representation of a chemical reaction, showing the reactants and products with their respective quantities.

Magnesium Oxide

A white hygroscopic solid mineral used as an antacid and mild laxative, and in numerous industrial applications.

Balanced Chemical Equation

An equation that represents a chemical reaction with equal numbers of atoms for each element in both reactants and products.