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:

Financial Objectives

Specific, measurable goals set by a business to enhance its financial performance.

Customer Behaviors

The behaviors exhibited by customers in the marketplace, including purchasing decisions, usage patterns, and disposal activities.

Capacity Utilization

The extent to which a firm or economy is using its installed productive capacity.

Rationalization

The process of reorganizing a company or system to make it more efficient and effective, often involving reductions in staff.