In the Long Run, Persistent Inflation in the United States

question 237

Multiple Choice

In the long run, persistent inflation in the United States is caused by

• A) leftward shifts in both the long-run aggregate supply curve and in the aggregate demand curve.
• B) rightward shifts in the long-run aggregate supply curve and the leftward shift of the aggregate demand curve.
• C) a faster rightward shift of the aggregate demand curve than the rightward shift of the long-run aggregate supply curve.
• D) leftward shifts in the aggregate demand curve while the position of the long-run supply curve is unchanged.

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Definitions:

Financing Activities

Transactions and events that relate to how a company finances its operations, including issuing debt, repaying loans, and issuing or buying back stock.

Net Cash Provided

The total amount of cash inflows minus cash outflows from a company's operating, financing, and investing activities.

Cash Dividends

are payments made by a company to its shareholders out of its profits or reserves, representing a portion of the company's earnings.

Indirect Method

A way to prepare a cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash flow from operating activities.