Figure 35-9

question 481

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. Subsequent to the shift of the Phillips curve from PC1 to PC2, the curve will soon shift back to PC1 if people perceive the

• A) increase in the inflation rate as a temporary aberration.
• B) economic boom as a temporary aberration.
• C) increase in the inflation rate as a sign of a new era of higher inflation.
• D) economic boom as a sign of a new era of higher economic growth.

---

Definitions:

Raw Materials Purchases

The total cost of raw materials bought for use in the production of goods or products during a specific accounting period.

Accounts Payable

Liabilities or amounts owed by a company to suppliers for purchases made on credit.

Raw Materials Purchases

Transactions related to buying the basic materials that are needed to manufacture goods.

Budgeted Cost

An estimated cost of activities, resources, assets, or liabilities that a company anticipates incurring during a specified period.