Which is the correct order once the AD or SRAS has shifted to start the inflation process? a. Prices increase in the shortage markets. b. Shortages develop in some markets. c. Prices throughout the economy rise.

The percentage change in the overall level of prices in an economy is called a. contraction.

What can be used to reduce aggregate demand and thereby control demand pull inflation? One word

Anna Graham is the new Treasury Secretary, and she is trying to interpret some inflation measures. In year one, the aggregate price level increased by 11% and in year two, the aggregate price level decreased by 1%. Which statement accurately characterizes the changes in the nation's price level? In year one, the economy is experiencing deflation. In year two, the economy is experiencing inflation. In year one, the economy is experiencing inflation. In year two, the economy is also experiencing inflation. In year one, the economy is experiencing inflation. In year two, the economy is experiencing deflation. In year one, the economy is experiencing deflation. In year two, the economy is experiencing disinflation.