-The Figure Above Shows the Aggregate Demand,short-Run Aggregate Supply,and Long-Run

question 268

Multiple Choice

-The figure above shows the aggregate demand,short-run aggregate supply,and long-run aggregate supply curves for the U.S.economy.The economy is currently at point A.A demand-pull rise in the price level will initially move the economy to point ________ and to point ________.

• A) E when aggregate demand increases; D when the wage rate rises
• B) B when aggregate demand decreases; C when the wage rate rises
• C) E; A when aggregate demand changes
• D) C when the wage rate rises; D when aggregate demand increases

---

Definitions:

Perpetual Inventory System

The perpetual inventory system continuously updates inventory records for each purchase and sale, providing a real-time view of inventory levels.

Marketing Tool

Any strategy, method, or resource used by companies to promote their products or services and increase market share.

Bargain Purchase Option

A lease option that allows the lessee to purchase the leased asset at the end of the lease term for a price significantly lower than the expected fair market value.

Minimum Lease Payments

The lowest amount that a lessee is obligated to pay over the lease term for the right to use an asset, including principal and interest.