Stagflation is a combination of: increasing unemployment and increasing inflatio

Question

Stagflation is a combination of: increasing unemployment and increasing inflation. decreasing unemployment and decreasing inflation. increasing unemployment and decreasing inflation. decreasing unemployment and increasing inflation. The aggregate demand curve shows the relationship between the aggregate price level and: aggregate productivity. the aggregate unemployment rate. the aggregate quantity of output demanded by households, businesses, the government, and the rest of the world. the aggregate quantity of output demanded by businesses only. A decrease in aggregate demand is seen as a(n): downward movement along the aggregate Demand curve. upward movement along the aggregate demand curve. shift to the left in the aggregate demand curve. shift to the right in the aggregate demand curve.

Explanation / Answer

1. Solution A increasing unemployment and increasing inflation

Explanation: Stagflation is a combination of increasing unemployment and increasing inflation. Stagflation is a perfect storm in economics wherein there is slow economic growth because of high unemployment and increasing inflation.

2. Solution: C the aggregate quantity of output demanded by households, businesses, the government and the rest of the world.

Explanation: The aggregate demand curve shows the relationship between the aggregate price level and the aggregate quantity of output demanded by households, businesses, the government and the rest of the world.

3. Solution: C shift to the left in the aggregate demand curve

Explanation: A decrease in aggregate demand is seen as shift to the left in the aggregate demand curve. It’s because when the monetary supply decreases, the demand curve will shift to the left as a result of decreases in consumption demand

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.