If there is persistent inflation Select one: a. long-run aggregate supply is constant. b. there is an excess of total planned expenditures. c. long-run aggregate supply is growing at a slower rate than aggregate demand. d. long-run aggregate supply is growing at a faster rate than aggregate demand.

. When aggregate supply is decreased it results in ________ inflation and _______output and jobs.higher, higherhigher, lowerlower, higherlower, lower

Read the news clip, then answer the following questions. inflation when it discusses The news clip refers to rising production costs. "Rising labour productivity" can neutralize the effect on the inflation rate of "higher input costs" because A. cost-push; it increases short-run aggregate supply and long-run aggregate supply with no slowdown in aggregate demand growth OB. demand-pull; it increases aggregate demand OC. demand-pull; it increases short-run aggregate supply D. cost-push; it increases aggregate demand by more than it increases short-run aggregate supply Tight Money Won't Slay Food, Energy Inflation It's important to differentiate between a general increase in prices a situation in which aggregate demand exceeds their aggregate supply and a relative price shock. For example, a specific shock to energy prices can become generalized if producers are able to pass on the higher costs. So far, global competition has made that difficult for companies, while higher input costs have…

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