In the Long Run, Demand-Pull Inflation

question 14

Multiple Choice

In the long run, demand-pull inflation:

• A)increases unemployment.
• B)decreases nominal wages.
• C)decreases real output.
• D)increases the price level.

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Definitions:

Distractor Studies

Research methods that involve using irrelevant stimuli or information to examine how attention is diverted or focused during a task.

Interference Theory

A theory explaining that forgetting occurs because memories interfere with and disrupt each other, either by a process of proactive or retroactive interference.

Decay Theory

A hypothesis in psychology that suggests the reason for forgetting is the automatic fading or weakening of the memory trace over time.

Hormone

Chemical that carries messages throughout the body, potentially affecting a person’s mood, level of energy, and reaction to stress.