In the Short Run, Demand-Pull Inflation Will Drive Up the Price

question 3

True/False

In the short run, demand-pull inflation will drive up the price level and increase real output; in the long run, only the price level will rise.

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Definitions:

General Motors

A multinational corporation headquartered in the United States that designs, manufactures, markets, and distributes vehicles and vehicle parts.

Pursuit of Happiness

A fundamental right mentioned in the Declaration of Independence to freely pursue joy and live life in a way that makes one happy, as long as one does not do anything illegal or violate the rights of others.