The Table Given Below Reports the Inflation Rate in the U.S

question 81

Multiple Choice

The table given below reports the inflation rate in the U.S. and Canada for two years.
Table 8.1
$\begin{array}{|c|c|c|}\hline & \text { United States } & \text { Canada } \\\hline \text { Inflation Rate (year 1) } & 0 \% & 0 \% \\\hline \text { Inflation Rate (year 2) } & 0 \% & 3.6 \% \\\hline\end{array}$
-Refer to Table 8.1. Assume the exchange rate is fixed at 1.4 CAD (Canadian dollars) = 1 USD (United States dollars) . Between year 1 and year 2, what happens to the U.S. aggregate demand curve?

• A) There is a movement to the right along the AD curve.
• B) The AD curve shifts to the right.
• C) The AD curve becomes relatively elastic.
• D) The AD curve shifts to the left.
• E) There is a movement to the left along the AD curve.

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Definitions:

Ventromedial Hypothalamus

A region of the brain involved in regulating hunger, fullness, and the body's energy balance.

Lateral Hypothalamus

A region of the brain that plays a key role in controlling hunger and thirst by regulating appetite and energy balance.

Hypothalamus

A small region at the base of the brain responsible for hormone production, regulation of body temperature, and maintaining daily physiological cycles.

Gastrocnemius

A major muscle in the back part of the lower leg, often referred to as the calf muscle, crucial for walking, jumping, and running.