Wages and Prices Chasing Each Other as Aggregate Demand Continually

question 73

Multiple Choice

Wages and prices chasing each other as aggregate demand continually shifts to the right and aggregate supply continually shifts to the left is called:

• A) demand- pull inflation
• B) a wage- price spiral
• C) structural inflation
• D) cost- push inflation

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Definitions:

Observational Study

A study in which a researcher carefully and systematically observes and records behavior without interfering with the behavior; it may involve either naturalistic or laboratory observation.

Exploratory

Research designed to investigate an area or phenomenon that is not well understood, often used to generate hypotheses for further study.

Experimental

Pertaining to a method of research that tests a hypothesis under controlled conditions.

Double-blind

A study or clinical trial design in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent bias.