Demand- Pull Inflation Is Associated with a Long- Term Decrease

question 57

True/False

Demand- pull inflation is associated with a long- term decrease in unemployment.

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Definitions:

Budget Deficits

A financial situation where expenditures exceed revenue.

Federal Budget

An annual financial statement presenting the government's proposed revenues and spending for a fiscal year.

Crowds Out

Refers to the effect where increased government spending and borrowing reduce private investment in the markets.

Fiscal Policy

Governmental adjustments of its spending levels and tax rates to influence a nation's economy.