Supply Side Inflation Can Be Caused by

question 267

Multiple Choice

Supply side inflation can be caused by

• A)a continual increase in aggregate supply while aggregate demand remains unchanged.
• B)a continual decrease in aggregate supply while aggregate demand remains unchanged.
• C)a continual decrease in aggregate supply while aggregate demand has significant decreases.
• D)a continual increase in aggregate demand while aggregate supply remains unchanged.

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Definitions:

Primary Factors

Fundamental elements or causes that contribute significantly to a result, situation, or process.

Deposits In Transit

Funds that have been deposited by a company but not yet recorded by its bank, leading to discrepancies in bank reconciliation.

Outstanding Checks

Checks that have been written and recorded in the payer’s ledger but have not yet been cashed or cleared by the bank.

General Ledger

A comprehensive accounting record of all transactions affecting a company, consolidated into debit and credit accounts.