Demand pull inflation occurs when a nation's:
a. Aggregate demand rises, causing rising prices and rising unemployment.
b. Aggregate demand rises, causing rising prices and falling unemployment.
c. Aggregate demand rises, which leads to a decrease in aggregate supply and an increase in prices.
d. Aggregate supply falls, causing rising prices and rising unemployment.
.B
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With two-part pricing, a firm
A) charges a lump-sum fee that gives the consumer the right to buy a good or service. B) must have market power. C) must be able to prevent resale. D) All of the above.
Putting a decision into action is called?
a. Visualization b. Implementation c. Satisficing d. Reactivity
In an imaginary economy, consumers buy only razors and cologne. The fixed basket consists of 6 razors and 4 bottles of cologne. A razor cost $20 in 2009 and $25 in 2010 . A bottle of cologne cost $30 in 2009 and $40 in 2010 . Using 2009 as the base year, which of the following statements is correct?
a. For the typical consumer, the number of dollars spent on razors is equal to the number of dollars spent on cologne in each of the two years. b. The consumer price index is 310 in 2010. c. The rate of inflation is 29.17% in 2010. d. None of the above is correct.
A firm will maximize the present value of future profits by maximizing current profits when the:
A. growth rate and interest rate are constant and equal. B. interest rate is larger than the growth rate in profits and both are constant. C. growth rate in profits is larger than the interest rate. D. growth rate in profits is constant.