If Inflation Increases, This Could Be Illustrated as A

question 28

Multiple Choice

If inflation increases, this could be illustrated as a:

• A)Rightward shift of the long-run aggregate supply curve
• B)Leftward shift of the long-run aggregate supply curve
• C)Rightward shift of the short-run aggregate supply curve
• D)Movement down along the short-run aggregate supply curve

---

Definitions:

Price Discrimination

The strategy of selling the same product to different customers at different prices, often based on their willingness or ability to pay.

Elastic Demand

A scenario in which a notable fluctuation in the demand for a product or service occurs due to a variation in its price.

Marginal Cost

The extra expense associated with making an additional unit of a product or service.

Hardcover Books

Books bound with rigid protective covers, often made of wood, cardboard, or similar materials, offering higher durability than paperback versions.