If the price index rose from 254 in year 1 to 289 in year 2, then the rate of in
ID: 1235175 • Letter: I
Question
If the price index rose from 254 in year 1 to 289 in year 2, then the rate of inflation for this economy in year 2 would be: 11.3 percent. 89 percent 13.7 percent 35 percent. If aggregate demand increases and, as a result, the price level increases but real nation output and employment remain unchanged, we can assume that: aggregate demand intersects aggregate supply in the intermediate range of the aggregate supply curve. aggregate demand intersects aggregate supply in the classical range of the aggregate supply curve. aggregate demand intersects aggregate supply in the Keynesian range of the aggregate supply curve. aggregate supply increases to accommodate the change in aggregate demand. Demand-pull inflation is associated with a(n): increase in aggregate demand in the Keynesian range of the aggregate supply curve. increase in aggregate demand in the classical or intermediate range of the aggregate supply curve. increase in aggregate supply in the classical range of the aggregate demand curve. decrease in aggregate supply with no change in aggregate demand. Which of the following would most likely increase aggregate supply?Explanation / Answer
1. 289/254= 1.13777 = 13.7% 2.(b) in the classical range the output is the same as demand shifts 3. demand pull inflation is inflation that results from an increase in the aggregate demand curve in both the classical and intermediate ranges of the aggregate supply curve, while the aggregate supply curve is fixed. so (b)