In the Long Run, Persistent Inflation in the United States

question 237

Multiple Choice

In the long run, persistent inflation in the United States is caused by

• A) leftward shifts in both the long-run aggregate supply curve and in the aggregate demand curve.
• B) rightward shifts in the long-run aggregate supply curve and the leftward shift of the aggregate demand curve.
• C) a faster rightward shift of the aggregate demand curve than the rightward shift of the long-run aggregate supply curve.
• D) leftward shifts in the aggregate demand curve while the position of the long-run supply curve is unchanged.

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Definitions:

Salary Expense Account

An account recording the total amount paid to employees for services rendered during a specific period, before any deductions.

Credit Entries

Entries made in the accounting records that increase liabilities or decrease assets.

Expense Account

An account specifically used to track expenditures related to specific activities, projects, or operations.

Credit

An arrangement where goods, services, or money is received in exchange for a promise to pay back a specific amount in the future.