On an Aggregate Demand and Aggregate Supply Graph,the Stagflation of the 1970s

question 89

Multiple Choice

On an aggregate demand and aggregate supply graph,the stagflation of the 1970s can be represented as a

• A)leftward shift of the aggregate supply curve
• B)rightward shift of the aggregate supply curve
• C)rise in the price level that caused an excess demand for output
• D)rightward shift of the aggregate demand curve
• E)decrease in the price level that caused an excess supply of output

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Definitions:

Price Variance

The difference between the actual price paid for something and its standard or expected price.

Actual Price

The real price at which a transaction occurs, distinct from list or estimated prices, reflecting the amount paid or received in a transaction.

Standard Price

A predetermined cost attributed to materials, labor, and overhead to facilitate budgeting and variance analysis.

Efficiency Standard

A benchmark for measuring the optimal use of resources in the production of goods or the delivery of services.