If Demand Pull Inflation Occurs When the Economy Is Already

question 4

Multiple Choice

If demand pull inflation occurs when the economy is already at potential GDP,then following the initial increase in aggregate demand,the

• A)AS curve shifts rightward.
• B)potential GDP line shifts rightward.
• C)AS curve shifts leftward.
• D)potential GDP line shifts leftward.
• E)None of the above is correct because demand-pull inflation shifts only the aggregate demand curve.

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Definitions:

New Product Development

This refers to the complete process of bringing a new product or service to the market, encompassing idea generation, product design, and marketing strategy.

Product Design

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An approach that emphasizes the importance of the whole and the interdependence of its parts, often used in management and problem-solving to consider all factors.

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