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.

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Definitions:

Revenue Accounts

Accounts that record the income a company earns from its normal business activities.

Expense Accounts

Accounts that track the costs of operating a business, such as rent, utilities, and salaries.

Identification Codes

Unique codes used to identify and track items or information in various systems.

Balances

The amounts of money in accounts, whether they are liabilities, assets, or equity, at a specific point in time.