In a Persisting Demand-Pull Inflation

question 44

Multiple Choice

In a persisting demand-pull inflation,

• A)aggregate supply decreases and aggregate demand increases.
• B)aggregate demand decreases and aggregate supply decreases.
• C)aggregate demand increases and potential GDP decreases.
• D)aggregate supply increases and aggregate demand increases.
• E)None of the above answers is correct.

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Definitions:

Concentration Gradient

The gradual difference in the concentration of solutes in a solution between two regions, often leading to diffusion from an area of higher concentration to lower concentration.

Electrochemical

Pertains to the branch of chemistry focused on the relationship between electrical and chemical phenomena, specifically, the movements of electrons and ions.

Concentration Gradient

A variation in the concentration of a substance across a distance, which can result in the movement of particles through diffusion or osmosis.

Phosphate

A chemical compound containing the phosphate ion, PO4^3-, crucial for energy transfer in biological systems and a key component of nucleic acids and cellular membranes.