Which of the following shifts both short-run and long-run aggregate supply to the left?
a. a decrease in the actual rate of inflation
b. a decrease in the expected rate of inflation
c. a decrease in the capital stock
d. a drought in the Midwest agricultural areas.
C
Economics
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If consumers tend to buy higher quantities of goods and services for which prices rose in the past year compared to the quantities of goods and services for which prices fell, we would say the economy has likely experienced
A. reflation B. stagflation C. deflation D. inflation
Economics
When the aggregate demand curve shifts to the right, intersecting the aggregate supply curve on its upward-sloping or vertical segment,
a. demand-pull inflation occurs. b. cost-push inflation occurs. c. stagflation occurs. d. deflation occurs. e. the shift pulls the price level down.
Economics