In a demand-pull inflation, money wage rates rise because

A) a decrease in aggregate demand creates a labor shortage.
B) an increase in aggregate demand creates a labor surplus.
C) an increase in aggregate demand creates a labor shortage.
D) a decrease in aggregate demand creates a labor surplus.
E) an increase in aggregate supply creates a labor shortage.


C

Economics

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When there is a high degree of complementarity between two products, then the indifference curves will:

A. be reasonably close to straight lines. B. be perfectly straight lines. C. bend sharply. D. be positively sloped.

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Positive analysis is concerned with "what ought to be," while normative analysis is concerned with "what is."

Indicate whether the statement is true or false

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When the price level in the United States falls relative to the price level of other countries, ________ will fall, ________ will rise, and ________ will rise

A) exports; imports; net exports B) net exports; imports; exports C) net exports; exports; imports D) imports; exports; net exports

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In the view of the Classical economists, a increase in aggregate demand leads to

A) lower output levels. B) a higher price level. C) higher output levels. D) a lower price level.

Economics