What Is the Crucial Difference Between Inflation Generated on the Demand

question 38

Multiple Choice

What is the crucial difference between inflation generated on the demand side versus inflation generated on the supply side?

• A)Demand-side inflation is short-lived, while supply-side inflation lasts for a long time.
• B)Demand-side inflation leads to budget surpluses, while supply-side inflation contributes to budget deficits.
• C)Supply-side inflation is subject to control of policy makers, while demand-side inflation is beyond their reach.
• D)Demand-side inflation is normally accompanied by rising real GDP, while supply-side inflation may be accompanied by falling real GDP.

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Definitions:

Desired Action

The specific behavior or response that a communicator aims to elicit from the audience.

Persuasive Message

A form of communication designed to influence the attitudes, beliefs, or behaviors of the recipient.

Cultural Differences

The variations in beliefs, values, practices, and social behaviors among different societies or groups.

Persuasive Message

A type of communication aimed at influencing the thoughts, beliefs, or actions of others through logical reasoning and emotional appeal.