* Q₁ Real Output Refer to the diagram. Assume both upward and downward price and wage flexibility in the economy. In the extended AD-AS model. 0 Multiple Choice recession would involve a leftward shift of curve A demand-pull Inflation would involve a rightward shift of curve A, followed by a rightward shift of curve C a rightward shift of curve Dwould be equivalent to an outward shift of the nation's production possibilities curve. cost-push inflation would involve a leftward shift of curve C, followed by an upward shift of curve B
* Q₁ Real Output Refer to the diagram. Assume both upward and downward price and wage flexibility in the economy. In the extended AD-AS model. 0 Multiple Choice recession would involve a leftward shift of curve A demand-pull Inflation would involve a rightward shift of curve A, followed by a rightward shift of curve C a rightward shift of curve Dwould be equivalent to an outward shift of the nation's production possibilities curve. cost-push inflation would involve a leftward shift of curve C, followed by an upward shift of curve B
Chapter1: Making Economics Decisions
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Transcribed Image Text:Price Level
0
Real Output
Refer to the diagram. Assume both upward and downward price and wage flexibility in the economy. In the extended AD-AS model,
Multiple Choice
recession would involve a leftward shift of curve A
demand-pull Inflation would involve a rightward shift of curve A, followed by a rightward shift of curve C
a rightward shift of curve Dwould be equivalent to an outward shift of the nation's production possibilities curve.
cost-push Inflation would involve a leftward shift of curve C, followed by an upward shift of curve B.
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