In the Long Run, Demand-Pull Inflation

question 106

Multiple Choice

In the long run, demand-pull inflation

• A)starts out with a shift in the AS curve but no shift of the AD curve.
• B)starts out with a rightward shift in the AD curve, followed by a resulting leftward shift of the short-run AS curve.
• C)starts out with a leftward shift in the AD curve, followed by a resulting rightward shift of the short-run AS curve.
• D)involves a shift of the AD curve only, with no shift of the AS curve.

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Definitions:

Marketing Channel

The path or route that products and services take from the producer to the end consumer, including all the intermediaries involved.

Intermediaries

are entities that act as a middleman in the distribution process between producers and consumers or between different trading partners.

Cheerios

A brand of cereal produced by General Mills, known for its distinctive O-shape and health-oriented marketing.

Nestlé

A Swiss multinational food and drink processing conglomerate, known for its wide range of products including coffee, dairy, and confectioneries.