Initially, demand-pull inflation will
What will be an ideal response?
ncrease both the price level and real GDP
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If for some reason U.S. residents increase their purchases of foreign assets, then all else constant which curve in the market for foreign-currency exchange shifts and which direction does it shift? What happens to the exchange rate?
The funds the Fed receives from selling government securities
A) are deposited in a commercial bank. B) disappear into thin air. C) are turned over to the Office of Management and Budget in Washington, D.C. D) are deposited in the U.S. Treasury.
The entry of firms into a market
A. Reduces the profits of existing firms in the market. B. Shifts the market supply curve to the left. C. Shifts the market demand curve to the left. D. Increases the equilibrium price.
During the 1990s, Japan's economy experienced
A) a tripling of values in the stock market. B) negligible inflation and unemployment rates. C) falling short-term interest rates. D) All of the above.