Following an Unexpected Decline in Aggregate Demand, Once Production Cutbacks

question 48

Multiple Choice

Following an unexpected decline in aggregate demand, once production cutbacks start offsetting rising inventory levels:

• A)the aggregate demand curve will shift to the right.
• B)the aggregate supply curve will shift to the left.
• C)the economy will return to its natural rate of unemployment.
• D)the short-run Phillips curve will shift to the right.
• E)the economy will face both higher inflation and a higher unemployment rate.

---

Definitions:

Palpation

A method in physical examination where the hands are used to feel body parts to detect abnormalities.

Percussion

A diagnostic technique used by healthcare providers involving tapping on the body's surface to evaluate the size, consistency, and borders of internal organs.

Auscultation

The act of listening to the internal sounds of the body, typically using a stethoscope, as a diagnostic method, especially in the examination of the heart and lungs.

Sexually Transmitted Disease (STI)

A sexually transmitted disease (STI), also known as a sexually transmitted infection, is an infection transmitted through sexual contact, caused by bacteria, viruses, or parasites.