Demand-pull inflation is caused by:
a. an increase in aggregate demand
b. a decrease in aggregate demand.
c. an increase in short-run aggregate supply.
d. a decrease in short-run aggregate supply.
a
You might also like to view...
Why is it that the consumer can maximize total net utility only if the purchase quantity brings marginal utility as close as possible to equality with price?
What will be an ideal response?
Thousands of people develop lung cancer from second-hand exposure to cigarette smoke. This is an example of
a. a market failure caused by an externality. b. a market failure caused by market power. c. a market failure caused by equality. d. There is no market failure in this case.
Additionally, the federal funds rate is
A. Very important for the Fed's monetary policy because individual borrowers pay this interest rate for mortgage loans B. Very important for the Fed's monetary policy because the Fed uses the federal funds rate as a monetary policy target since it can control the rate through open market operations C. Very important for the Fed's monetary policy because it is Administratively set by the Fed
Which of the following is most likely to be a major source of growth in per capita GDP?
A. a high investment / GDP ratio B. a high rate of inflation C. rapid population growth D. rapid growth in the money supply