Theoretically, one can distinguish a demand-pull inflation from a cost-push inflation by comparing
A) how fast prices rise relative to wages.
B) the unemployment rate with its natural rate level.
C) when prices rise relative to wages.
D) government debt to real GDP.
B
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Supermarkets will frequently not carry the products of food processors unless the processors pay fees to the supermarkets because
A) supermarkets are cartels. B) supermarkets often dominate the geographic areas in which they sell. C) supermarkets stand between the food processors and the ultimate consumers. D) supermarket shelves are scarce goods. E) supermarkets typically have more bargaining power than food processors.
The maximum economic profit that can be made by a duopoly that colludes is equal to the ________
A) economic profit made by duopolists who cheat B) normal profit made by an oligopoly C) economic profit made by a monopoly D) normal profit made by firms in perfect competition
The principle of comparative advantage states that total output is greatest when each product is made by the country that has the _____________.
Fill in the blank(s) with the appropriate word(s).
A decrease in interest rates by the Fed based on a given and unchanged policy reaction function represents a ________ the aggregate demand curve, and lower interest rates resulting from a downward shift in the Fed's policy reaction function represents a ________ the aggregate demand curve.
A. movement down; shift right of B. shift left of; movement up C. shift left of; shift right of D. movement up; movement down