In a Demand-Pull Inflation, If the Fed Stops Expanding the Quantity

question 75

Multiple Choice

In a demand-pull inflation, if the Fed stops expanding the quantity of money,

• A) the demand-pull inflation ends.
• B) a cost-push inflation will occur.
• C) a deflation will occur.
• D) government expenditure will cause the demand-pull inflation to continue.

Understand the legal and economic instruments, such as right-to-work laws and strikes, that influence the operation and power of unions.

Evaluate the arguments for and against the existence of unions and their effects on labor market efficiency and equity.

Understand the concept and implications of efficiency wages in the context of labor productivity and firm practices.

Understand the concept and implications of efficiency wages and their role in reducing shirking and turnover within firms.

---

Definitions:

Jailed Without Trial

The practice of detaining individuals without the opportunity to have a hearing or trial, often criticized for violating human rights and the principle of due process.

Émile

A foundational work on education and human nature by French philosopher Jean-Jacques Rousseau, published in 1762.

Rousseau

Jean-Jacques Rousseau, an 18th-century philosopher from Geneva, known for his influential works on political philosophy, education, and Enlightenment ideas on individual freedom and social contract.

Ideal Education

An educational framework that aims to nurture the intellectual, physical, moral, and emotional growth of individuals, preparing them for the challenges of the real world through a well-rounded curriculum.