Figure 35-9

question 30

Multiple Choice

Figure 35-9.The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves.On the right-hand diagram,"Inf Rate" means "Inflation Rate."
-Refer to Figure 35-9.Faced with the shift of the Phillips curve from PC₁ to PC₂,policymakers will

• A)ask whether the shift is temporary or permanent.
• B)be concerned with how people adjust their expectations of inflation as a result of the shift.
• C)face,as well,a decision as to whether to accommodate the shock.
• D)All of the above are correct.

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Definitions:

Financing Activities

Transactions and events where funds are raised for the company, which may include issuing stocks, bonds, or taking out loans, affecting the equity and debt of the business.

Cash Flow

A measurement of the net amount of cash and cash-equivalents being transferred into and out of a business.

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation and a claim on part of the corporation's profits.

Statement of Cash Flows

A financial overview showing the cumulative cash inflows from a company's daily operations and investment receipts, against the total cash outlays for operational and investment expenditures during a nominated period.