Suppose an Economy Experiences Stagflation

question 29

Multiple Choice

Suppose an economy experiences stagflation.All things equal, which of the following remedies would be the most effective?  

• A) increased aggregate demand for goods and services 
• B) decreased aggregate demand for goods and services 
• C) increased aggregate supply of goods and services 
• D) decreased aggregate supply of goods and services

---

Definitions:

Dispositional Traits

Enduring personality characteristics that influence behavior across different situations and over time.

False Consensus Effect

The cognitive bias whereby people tend to overestimate how much others agree with their own beliefs, attitudes, or behaviors.

Stimulus Overload Effect

A phenomenon where individuals experience stress or cognitive overload due to an excessive amount of stimuli to process.

Dispositional

Pertaining to one's inherent qualities of mind and character, often used in psychology to describe an individual's tendencies or personality traits.