Use the Following Diagram to Answer the Following Questions

question 67

Multiple Choice

Use the following diagram to answer the following questions.

-Refer to Diagram 14-2. In the above diagram, which of the following illustrates inflation caused by reduction in production of oil?

• A) a shift in aggregate demand from AD₁ to AD₂.
• B) a shift in aggregate demand from AD₂ to AD₁.
• C) a shift in aggregate supply from AS₂ to AS₁.
• D) a shift in aggregate supply from AS₁ to AS₂.

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Definitions:

Credential Inflation

The phenomenon where the educational qualifications required for a particular job become increasingly higher, often exceeding the skills actually necessary for the job.

Benefit Employers

Advantages or favorable conditions created for businesses or organizations that employ individuals.

Head Start Program

A program in the United States aimed at early childhood education, health, and parent involvement services to low-income children and their families.

Testing And Tracking

The processes of assessing the performance, quality, or reliability of a product, service, or system, and monitoring its progress or location over time.