Inflationary Pressures May Be Lessened with Measures Designed to

question 36

Multiple Choice

Inflationary pressures may be lessened with measures designed to

• A)shift the aggregate demand curve to the right.
• B) shift the aggregate supply curve to the right.
• C) shift the Phillips curve to the right.
• D) couple a leftward shift in the aggregate supply curve with a rightward shift in the aggregate demand curve.
• E) make the aggregate supply curve vertical at a lower level of real output.

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Definitions:

Producer Price Index

An economic indicator representing the average change over time in the selling prices received by domestic producers for their output.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to track changes in living costs.

Consumer Price Index

A measure that determines the average movement over time in the pricing urban shoppers pay for a selected assortment of consumer goods and services.

Producer Price Index

A gauge of economic health that records the mean shift over periods in the sale prices domestic producers earn from their output.