If Most People Expect the Inflation Rate Will Increase, The

question 62

Multiple Choice

If most people expect the inflation rate will increase, the:

• A)Long-run aggregate supply curve would shift right
• B)Aggregate demand curve would shift right
• C)Short-run aggregate supply curve would shift to the right
• D)Short-run aggregate supply curve would shift to the left

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Definitions:

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

Marginal Cost

The escalation in the entire cost linked to the output of an additional unit.

Average Cost

The cost per unit is determined by dividing the overall production cost by the total units produced.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the quantity of output produced.