____ Inflation Can Be Explained by an ____ Shift in the Aggregate

question 36

Multiple Choice

____ inflation can be explained by an ____ shift in the aggregate ____ curve.

• A) Demand-pull, outward, demand
• B) Cost-push, outward, supply
• C) Demand-pull, outward, supply,
• D) Cost-push, outward, supply.

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Definitions:

Variable Costs

Variable Costs are expenses that change in direct proportion to the volume of output or activity in a business, such as materials and labor.

Average Fixed Costs

The fixed costs of production (costs that do not change with the level of output) divided by the quantity produced.

Total Costs

The sum of fixed and variable costs incurred by a firm in the production of goods or services.

TC Curve

A graphical representation showing the total cost of producing different quantities of a good or service.