Exhibit 14-2 Aggregate Demand and Supply

question 3

Multiple Choice

Exhibit 14-2 Aggregate demand and supply

-In Exhibit 14-2,when aggregate demand shifts from AD₄ to AD₅,the economy experiences:

• A)cost-push inflation.
• B)cost-pull inflation.
• C)demand-push inflation.
• D)demand-pull inflation.
• E)price-pull inflation.

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Definitions:

Objective Evidence

Information that is factual, measurable, and observable, thus free from personal feelings or subjective interpretation.

AIDA Model

A marketing acronym that stands for Attention, Interest, Desire, and Action; a model used to describe the steps a customer goes through in the process of purchasing a product or service.

Desire

A strong feeling of wanting to have something or wishing for something to happen.

AIDA Model

A marketing model that outlines the customer journey through four stages: Attention, Interest, Desire, and Action, used to guide promotional and advertising strategies.