Demand-Pull Inflation Is Caused by

question 117

Multiple Choice

Demand-pull inflation is caused by

• A)An increase in aggregate supply.
• B)An increase in resource costs as an economy's production capacity is approached.
• C)An increase in inventories.
• D)Excessive aggregate demand in relation to an economy's production capacity.

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Definitions:

Probability Level

The likelihood or chance that a particular event will occur, often measured by a numerical value ranging from 0 (impossibility) to 1 (certainty).

Size of the Effect

The magnitude of the difference or relationship between variables, often used to understand the practical significance of research findings.

Partial Correlation

A numerical index that reflects the relationship between two variables with the removal of the influence of a third variable (called a mediating or confounding variable).

Absolute Value

A numerical value without regard to its sign, often represented as the distance of a number from zero on the real number line.