Demand-pull inflation is
A) inflation caused by increases in aggregate demand that generate an even larger increase in aggregate supply.
B) inflation caused by increases in aggregate demand that are not matched by increases in aggregate supply.
C) inflation caused by reductions in short-run aggregate supply.
D) inflation caused by reductions in long-run aggregate supply.
B
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You participate in a taste test for a new protein supplement called "Kapow." You are given five consecutive one ounce vials of the supplement and after consuming each vial you are asked to note your reaction
You consume the first vial and your response is: "Hmmm, quite good!" After the second, you say, "Not bad at all." After the third, you note, "It's alright." and after the fourth you wince, "No more, the after-taste is getting to me. I need water." What economic principle does this scenario illustrate? Define the principle.
During the antebellum period, two systems of land use emerged—the self-sufficient system of the North, which did not rely on specialization, and the specialized system of the South, which concentrated the use of slaves
Indicate whether the statement is true or false
Given that the firm only chooses to sell the no-name brand, how should it price its product?
a. Price low, sell to both users b. Price high, sell only to the professional chefs c. Price low, sell only to the professional chefs d. Price high, sell only to the home users
Which of the following is not an argument in favor of requiring the government to balance its budget?
a. Government debt imposes higher taxes or more borrowing on future generations. b. A balanced budget will smooth the business cycle. c. Deficits lower national saving. d. Recent history shows that Congress will run deficits even when deficits are not justified by war or recession.