Demand-pull inflation is caused by
A) aggregate demand increasing along an upward sloping or a vertical aggregate supply curve.
B) aggregate demand decreasing along an upward sloping or a vertical aggregate supply curve.
C) aggregate demand increasing along a horizontal aggregate supply curve.
D) aggregate demand decreasing along a horizontal aggregate supply curve.
A
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The amount by which an aggregate expenditures schedule must shift upward to achieve the full-employment real GDP is a(n)
A. recessionary expenditure gap. B. negative net export gap. C. expenditure multiplier gap. D. inflationary expenditure gap.
Suppose that three consumers are in the market for good X. Consumer 1's (inverse) demand is PX = 40 ? QX; Consumer 2's (inverse) demand is PX = 50 ? 2QX; and Consumer 3's (inverse) demand is PX = 70 ? 4QX. When PX = $20, the market will demand:
A. 19.5 units. B. 47.5 units. C. 41 units. D. None of the statements is correct.
According to the above table, the value of M2 is
A. $6,237 billion. B. $5,337 billion. C. $3,807 billion. D. $6,253 billion.
Using marginal analysis, explain why many restaurants and coffee shops offer low-cost refills on beverages (for example, a shop may charge $1.50 for a cup of coffee and only $.50 for a refill).
What will be an ideal response?