With Demand-Pull Inflation in the Long-Run AD-AS Model,there Is

question 115

Multiple Choice

With demand-pull inflation in the long-run AD-AS model,there is:

• A) a decrease in aggregate demand that eventually increases nominal wages and causes a decrease in the short-run aggregate supply curve.
• B) an increase in aggregate demand that eventually increases nominal wages and causes an increase in the short-run aggregate supply curve.
• C) an increase in aggregate demand that eventually decreases nominal wages and causes a decrease in the short-run aggregate supply curve.
• D) an increase in aggregate demand that eventually increases nominal wages and causes a decrease in the short-run aggregate supply curve.

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Definitions:

Bowman's Capsule

A part of the nephron in the kidney that encloses the glomerulus and where filtration of blood plasma begins in the process of urine formation.

Glomerulus

Cluster of leaky capillaries enclosed by a Bowman’s capsule.

Distal Tubule

Region of a kidney tubule that connects to a collecting tubule.

Proximal Tubule

Region of kidney tubule nearest Bowman’s capsule.