Which of the following is a correct statement?
A. It is relatively easy to distinguish between cost-push and demand-pull inflation even if you don't know the source of the inflation
B. A supply shock will cause a variation of demand-pull inflation that can lead to hyperinflation
C. Demand-pull inflation will continue so long as there is excess total spending in the economy
D. Demand-pull inflation is usually accompanied by higher unemployment rates
C. Demand-pull inflation will continue so long as there is excess total spending in the economy
You might also like to view...
When a market is in equilibrium, excess demand and excess supply are zero
Indicate whether the statement is true or false
If you hear an economist argue that the economy does not experience business cycles but merely experiences variations in economic activity over time, you know that economist belongs to the school of
a. real business cycle theory b. Keynesian economics c. production possibilities growth theory d. accelerator cycle theory e. capital-based, long run growth theory
A risk-averse person has
a. utility and marginal utility curves that slope upward. b. utility and marginal utility curves that slope downward. c. a utility curve that slopes down and a marginal utility curve that slopes upward. d. a utility curve that slopes upward and a marginal utility curve that slopes downward.
If Price Elasticity of Demand is -2.4, the product is:
a) Inferior. b) Elastic. c) Inelastic. d) Unit elastic.