In the Dynamic Aggregated Demand and Aggregate Supply Model,if AD

question 31

Multiple Choice

In the dynamic aggregated demand and aggregate supply model,if AD shifts faster than AS

• A)inflation occurs.
• B)deflation occurs.
• C)stagflation occurs.
• D)disinflation occurs.

---

Definitions:

Yield Curve

A graph showing the relationship between interest rates and the maturity length of debt securities, indicating the term structure of interest rates.

Economic Indicators

Statistics and data metrics that provide insights into the economic performance of a country, leading to an understanding of its economic health and future direction.

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, as an indicator of inflation.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, considering all interest payments and its current price.