In the Dynamic Aggregate Demand and Aggregate Supply Model, Inflation

question 19

Multiple Choice

In the dynamic aggregate demand and aggregate supply model, inflation occurs if

• A)AD shifts faster than SRAS.
• B)AD shifts slower than SRAS.
• C)SRAS shifts faster than AD.
• D)LRAS shifts faster than AD.
• E)LRAS shifts faster than SRAS.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are.

Normally Distributed

Describes a data distribution that follows a bell curve, where most observations cluster around the central peak and probabilities for values taper off equally on both sides.

Mean

The average of a set of numbers, calculated by summing all the numbers and then dividing by the count of those numbers.

Right-Skewed

A description of a distribution of data where the tail on the right side of the histogram is longer or fatter than the left side, indicating that the mean is greater than the median.