If the Economy Is Producing at Capacity and Consumers Are

question 40

Multiple Choice

If the economy is producing at capacity and consumers are willing and able to buy more,this may cause

• A)Demand-pull inflation.
• B)Cost-push inflation.
• C)Supply-side inflation.
• D)The price effect.

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Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company's financial position, showing assets, liabilities, and shareholders' equity at a specific point in time.

Net Income

The total profit of a company after all expenses, including taxes and operational costs, have been subtracted from its total revenue.

Cost of Goods Sold

Direct spending associated with producing the merchandise a company trades, including both materials and manpower costs.

Worksheet

A columnar device used by accountants to aid them in completing the accounting cycle—often just referred to as "spreadsheet." It is not a formal report.