If increases in total spending are not offset by increases in the supply of goods and services, the average price level will rise. Which of the following factors is responsible for this rise?
a. Cost-push inflation
b. Fiscal deficit
c. Demand-pull inflation
d. Wage-push inflation
e. Unemployment
c
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The cost to a member bank of borrowing from the Federal Reserve is the
Marginal cost is the minimum price that producers must receive to induce them to produce another unit of a good or service
Indicate whether the statement is true or false
The neighborhood ice cream shop finds that when it charges $3 per ice cream cone, its total revenues are $90,000. It has total variable costs of $30,000 and total fixed costs of $40,000. From this we can infer the:
A. shop sells 10,000 ice cream cones. B. price is less than average total cost. C. economic profits are $20,000. D. shop will be closed in the long run.
The President of the NY Federal Reserve Bank is always a member of the Federal Open Market Committee.
Answer the following statement true (T) or false (F)