Theoretically,one Can Distinguish a Demand-Pull Inflation from a Cost-Push Inflation

question 34

Multiple Choice

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.

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Definitions:

Middle Class

A social group between the upper and working classes, typically inclusive of professionals, business workers, and others with a moderate to high level of income.

Economic Order

A systematic arrangement of activities and institutions that collectively determine the production, distribution, and consumption of goods and services in a society.

Relative Luminance

A measure of the amount of light that is reflected from or emitted by a surface, viewed from a specific angle, and normalized to a scale from 0 to 1.

Retinal Disparity

The slight difference in the visual images that reach each eye, which is then interpreted by the brain to gauge depth and distance.