To Illustrate Inflation Inertia in an Aggregate Demand-Aggregate Supply Model

question 33

Multiple Choice

To illustrate inflation inertia in an aggregate demand-aggregate supply model, the short-run aggregate supply curve shifts upward because of increases in ______, and the aggregate demand curve shifts upward because of increases in ______.

• A) the expected price level; the money supply
• B) the money supply; the expected price level
• C) output; the price level
• D) the price level; output

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Definitions:

Music

An art form and cultural activity involving the creation of works through the organization of sound, rhythm, melody, and harmony.

Productivity

The effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.

Experimental Group

The group in an experiment that receives the treatment or intervention under study, allowing researchers to measure its effects.

Room Temperature

The ambient temperature of a living space, usually considered to be around 20-22 degrees Celsius or 68-72 degrees Fahrenheit.