When the Aggregate Demand Curve Shifts to the Right, Intersecting

question 24

Multiple Choice

When the aggregate demand curve shifts to the right, intersecting the aggregate supply curve on its upward-sloping or vertical segment:

• A) demand-pull inflation occurs.
• B) cost-push inflation occurs.
• C) stagflation occurs.
• D) deflation occurs.

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Definitions:

Preservative

A substance added to products such as foods, pharmaceuticals, and cosmetics to prevent spoilage or degradation by microbial growth or undesirable chemical changes.

Formaldehyde Solution

A watery solution containing formaldehyde, a chemical used as a disinfectant, preservative, or in various industrial applications.

Healing

The natural process by which the body repairs and regenerates tissue damage or disease.

Incision

A cut made into a body part or tissue, oftentimes during surgery.