A Demand- Pull Inflation Spiral Results When

question 64

Multiple Choice

A demand- pull inflation spiral results when

• A) the economy experiences a one- time jump in the price level.
• B) aggregate demand increases, the Federal Reserve does not increase the quantity of money, and so the economy corrects the resulting inflationary gap on its own.
• C) aggregate demand increases and the economy corrects the resulting inflationary gap, but aggregate demand continues to increase because the Federal Reserve continues to increase the quantity of money.
• D) aggregate supply decreases, the Federal Reserve corrects the resulting recessionary gap by increasing the quantity of money and the supply shocks then stop.

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Environmental Risk

Potential harm or danger to the natural environment due to human activities or natural processes.

Poor People

Individuals or groups who lack the financial resources to meet a standard of living considered comfortable or normal in their society.

Urban Dwellers

Individuals who reside within the confines of a city or metropolitan area.

Environmental Racism

Discrimination in environmental policy-making and the enforcement of regulations and laws that disproportionately affects minority communities.