Answer to Question #338174 in Macroeconomics for Yaya

Question

Inflation can be caused by a/an ...... Within the AD-AS model, this will be illustrated by a ......

a. 

fall in crude oil price; rightward shift of the AS curve

a. fall in crude oil price; rightward shift of the AS curve

b. 

rise in consumption spending; leftward shift of the AD curve

b. rise in consumption spending; leftward shift of the AD curve

c. 

decrease in exports earnings; leftward shift of the AD curve

c. decrease in exports earnings; leftward shift of the AD curve

d. 

high wage demands by trade unions; leftward shift of the AS curve

Answer 1

d. 

high wage demands by trade unions; leftward shift of the AS curve