As Aggregate Demand Shifts Left Along the Short-Run Aggregate Supply

question 28

Multiple Choice

As aggregate demand shifts left along the short-run aggregate supply curve,

• A)inflation and unemployment are higher.
• B)inflation is higher and unemployment is lower.
• C)unemployment is higher and inflation is lower.
• D)unemployment and inflation are lower.

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Definitions:

Democratic Government

A form of government where power is vested in the people, who rule either directly or through freely elected representatives.

Police Power

The capacity of a state to regulate behaviors and enforce order within its territory for the betterment of the health, safety, morals, and general welfare of its inhabitants.

Jurisdiction

The official power to make legal decisions and judgments, often defined by geographic area or the type of case.

Convenience Stores

Retail businesses that sell a limited range of everyday items such as groceries, snack foods, and sundries, and are often open for extended hours.