Which of the Following Could Lead to Moderate Inflation

question 135

Multiple Choice

Which of the following could lead to moderate inflation?

• A) a negative supply shock
• B) a decrease in consumer confidence
• C) a contractionary fiscal policy
• D) the pursuit of a balanced budget with a deficit during an expansion

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Definitions:

Shape Constancy

The perceptual phenomenon where the perceived shape of an object remains constant despite changes in the angle of observation or illumination.

Ponzo Illusion

A visual illusion where two horizontal lines of identical length appear different in length because of their background cues, demonstrating depth perception.

Retinal Disparity

The slight difference in images perceived by the left and right eyes, which contributes to depth perception.

Linear Perspective

A technique in art and photography that creates the illusion of depth and distance by converging parallel lines towards a single vanishing point.