Question 1
Refer to the information provided in Figure 27.4 below to answer the question(s) that follow.
Refer to Figure 27.4. If the economy is currently at the intersection of
AS and
AD, a decrease in
AS with no change in
AD will cause
◦ deflation.
◦ stagflation.
◦ economic growth.
◦ deflationary growth.
Question 2
Refer to the information provided in Figure 27.4 below to answer the question(s) that follow.
Refer to Figure 27.4. Higher price levels coupled with lower output are the result of
◦ deflation.
◦ stagflation.
◦ economic growth.
◦ deflationary growth.