If Increased Inflation Exceeds Forecast Inflation in the Short Run

question 48

Multiple Choice

If increased inflation exceeds forecast inflation in the short run but NOT in the long run,what are the shapes of the aggregate supply curves?

• A)AS is upward sloping in the short run and vertical in the long run.
• B)AS is vertical in the short run and in the long run.
• C)AS is vertical in the short run, and upward sloping in the long run.
• D)AS is upward sloping in the short run and horizontal in the long run.

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Definitions:

Psychosocial Development

Psychosocial development refers to the theory originated by Erik Erikson that describes how individuals develop social and emotional skills across eight stages from infancy to adulthood.

Erikson

Erik Erikson was a developmental psychologist and psychoanalyst known for his theory on the psychological development of human beings, which includes eight stages from infancy to adulthood.

Autonomy

The capacity to make an informed, uncoerced decision freely; a crucial aspect of individual freedom and self-determination.

Neutral Stimulus

A stimulus that initially does not elicit any intrinsic response until it is associated with an unconditioned stimulus.