In the Short-Run, Demand-Pull Inflation Increases

question 73

Multiple Choice

In the short-run, demand-pull inflation increases

• A)real wages, but in the long-run only nominal wages.
• B)nominal wages, but in the long-run only real wages.
• C)real output and the price level, but in the long-run only real output.
• D)real output and the price level, but in the long-run only the price level.

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Definitions:

Present Value

The modern-day value of a potential future sum of money or sequence of financial inflows, accounting for a particular return rate.

Registered Education Savings Plan

A tax-advantaged savings account in Canada designed to help save for a child's post-secondary education.

Compounded Semi-annually

Involves calculating and adding interest to the principal amount of an investment or loan twice per year, leading to compound growth over time.

Semi-annual Withdrawals

Withdrawals made twice a year from an account or investment.