What is “demand-pull” inflation?
What will be an ideal response?
“Demand-pull” inflation is the traditional view that inflation is caused by growing total demand bidding up the prices of output in a period of nearly full or full employment.
You might also like to view...
Purchases of goods and services are included in GDP, but transfer payments are not included
Indicate whether the statement is true or false
An outward shift in the consumer demand for wheat will
A) raise the price of wheat and shift inward the marginal revenue product of labor producing wheat. B) lead to more capital and less labor used in producing wheat. C) raise the price of wheat and shift out the marginal revenue product of labor producing wheat. D) lead to downward pressure on the wages of those producing wheat.
In the long run, all firms in a perfectly competitive industry
A) earn economic profits. B) break even. C) suffer economic losses. D) sell differentiated products to earn economic profits.
Figure 7.2
Refer to Figure 7.2. Assume that Ashley faces budget line AB with her $60 income. Then the opportunity cost to her of a book is:
A. one hamburger. B. two hamburgers. C. three hamburgers. D. four hamburgers.