Use the Following to Answer Questions

question 69

Multiple Choice

Use the following to answer questions :
Figure: AD-AS Model and the Short-Run Phillips Curve
-(Figure: AD-AS Model and the Short-Run Phillips Curve) Look at AD-AS Model and the Short-Run Phillips Curve. If the central bank increases the money supply so that aggregate demand shifts from AD₁ to AD₂, then the inflation rate will be:

• A)zero.
• B)2%.
• C)4%.
• D)6%.

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Definitions:

Lateral Communication

Lateral communication is the flow of messages at the same levels across organizations.

Departmental Boundaries

The divisions or limits that separate different departments within an organization, which can affect communication and workflow.

Lateral Communication

The exchange of information and ideas between individuals or groups at the same level of an organizational hierarchy.

Chain Of Command

The formal line of authority within an organization that dictates how instructions and decisions are passed from senior management down to lower levels of employees.