To Prevent Demand- Pull Inflation

question 1

Multiple Choice

To prevent demand- pull inflation

• A) real GDP must increase.
• B) the natural unemployment rate must increase.
• C) firms must refuse to increase wages.
• D) the Fed must not let the quantity of money persistently rise.

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Definitions:

Agricultural Act of 2018

Also known as the 2018 Farm Bill, it is federal legislation that funds and governs various agricultural and food programs, including crop insurance, nutrition assistance, and rural development.

Crop Insurance

A policy that protects agricultural producers against crop loss or damage caused by weather, pests, or disease.

Freedom to Farm Act

U.S. legislation passed in 1996 that aimed to reduce government control over farming operations and subsidies, allowing farmers more freedom to make planting decisions.

Special-Interest Effect

The situation where a small group gains substantially at the expense of a large group, often seen in political lobbying and policy making.