Demand-Pull Inflation Can Develop When

question 68

Multiple Choice

Demand-pull inflation can develop when

• A)There is a shortage of investment and investors bid up interest rates.
• B)Inventories shrink and consumers bid up prices.
• C)There is a surplus of resources and so wages are bid up by employers.
• D)Undesired investment occurs.

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Definitions:

Unemployment

The situation when individuals who are capable of working and willing to work are unable to find employment.

Economic Resource

Resources utilized in creating goods and services, including land, labor, capital, and entrepreneurship.

Business Checking Account

A bank account designed for business transactions, allowing companies to easily manage their cash flow, pay bills, and deposit earnings.

Production Possibilities Curve

A graph that shows the various combinations of outputs that an economy can possibly produce, given the available factors of production and technology.