-Refer to the Above Diagram

question 5

Multiple Choice

-Refer to the above diagram.The initial aggregate demand curve is AD₁ and the initial aggregate supply curve is AS₁.In the long run,demand-pull inflation is best shown as:

• A) a shift of aggregate demand from AD₁ to AD₂ followed by a shift of aggregate supply from AS₁ to AS₂.
• B) a move from d to b to a.
• C) a shift of aggregate supply from AS₁ to AS₂ followed by a shift of aggregate demand from AD₁ to AD₂.
• D) a move from a to d.

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Definitions:

Enhancement

Refers to the improvement or intensification of qualities, performance, or characteristics, often through the use of technological, chemical, or psychological means.

Correlation

A numerical indicator showing how much two or more variables move in relation to each other.

Validity

The degree to which an idea, finding, or measure is grounded in reality and reflects the true state of affairs accurately.

Reliability

The degree to which an assessment tool produces stable and consistent results over time.