Figure 12.4 -Refer to Figure 12.4. the Combination of Rising Prices and of Rising

question 88

Multiple Choice

Figure 12.4

-Refer to Figure 12.4. The combination of rising prices and falling output is known as stagflation. This phenomenon is represented by which of the following shifts?

• A) LRAS₂ to LRAS₁
• B) AD₁ to AD₂
• C) AD₂ to AD₁
• D) LRAS₁ to LRAS₂
• E) The combination of LRAS₁ to LRAS₂ and AD₁ to AD₂

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Definitions:

Outstanding Checks

Checks that have been written and recorded in a ledger but have not yet been cashed or cleared by the bank.

Outstanding Deposit

Funds that have been deposited but not yet credited to the depositor's account.

Check Register

A record maintained by the account holder of checks written, deposits made, and current balance, used for managing a checking account.

Writing Checks

The process of completing and signing a check as a means of making a payment from a bank account.