When the Aggregate Demand Curve Shifts to the Right,intersecting the Aggregate

question 122

Multiple Choice

When the aggregate demand curve shifts to the right,intersecting the aggregate supply curve on its upward-sloping or vertical segment,

• A) demand-pull inflation occurs.
• B) cost-push inflation occurs.
• C) stagflation occurs.
• D) deflation occurs.
• E) the shift pulls the price level down.

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Definitions:

Normally Distributed

Describes a distribution that follows a normal curve or bell curve, where most observations cluster around the central peak and the probabilities for values further away from the mean taper off equally in both directions.

Sampling Distribution

The distribution pattern of probabilities for a specified statistic obtained from a random sample.

Normally Distributed

A data distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Sampling Distribution

A probability distribution of a statistic obtained through a large number of samples drawn from a specific population.