If the Prices of Crucial Raw Materials Increase

question 186

Multiple Choice

If the prices of crucial raw materials increase

• A) the short-run aggregate supply curve shifts leftward.
• B) stagflation could occur.
• C) a cost-push inflation could occur depending on the behavior of the Federal Reserve.
• D) All of the above answers are correct.

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Definitions:

Likelihood of Occurrence

Likelihood of occurrence refers to the probability that a given event will happen, often used in statistics to estimate outcomes.

Parameter

A numerical characteristic that describes a statistical population; it's a fixed value, though often unknown.

Sampling Distribution

The probability distribution of a statistic based on a large number of samples or simulations.

Nonnormal Population

Refers to a population that does not follow a normal distribution, which can affect the choice of statistical methods used for analysis.