Which of the following could start a demand-pull inflation?
A) There is an increase in the quantity of money.
B) There is an increase in government expenditures.
C) There is an increase in exports.
D) All of the above could be initial causes of demand-pull inflation.
D) All of the above could be initial causes of demand-pull inflation.
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Which of the following cause(s) economic growth?
a. c and d. b. d and e. c. The production of more scarce goods d. A technological improvement e. The production of more capital goods
Refer to Current and Future Consumption. The diagram shows the case of a
a. representative agent.
b. net borrower.
c. net lender.
d. disequilibrium situation.
Those who desire that policymakers stabilize the economy would advocate which of the following when aggregate demand is insufficient to ensure full employment?
a. decrease the money supply b. increase taxes c. increase government expenditures d. Do nothing and let markets correct themselves.
Which of the following best explains an economic criticism of unregulated monopolists?
A. Monopolists do not try to minimize their fixed costs of production. B. Monopolists produce where marginal revenue is greater than marginal costs. C. Monopolists attempt to produce too many products, and as a result, their prices are high, and consumer's waste time trying to choose between too many options. D. Monopolists restrict output, and as a result, they fail to produce units that are valued more than the marginal cost of producing them.