In the Short-Run, Demand-Pull Inflation Increases

question 73

Multiple Choice

In the short-run, demand-pull inflation increases

• A)real wages, but in the long-run only nominal wages.
• B)nominal wages, but in the long-run only real wages.
• C)real output and the price level, but in the long-run only real output.
• D)real output and the price level, but in the long-run only the price level.

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Definitions:

Maladaptive

Behaviors or thought processes that are counterproductive to an individual’s overall well-being or ability to meet their needs and goals.

Generalised Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about a range of different things.

Panic Disorder

A psychiatric disorder characterized by unexpected and repeated episodes of intense fear accompanied by physical symptoms.

Hypochondriasis

A condition involving excessive preoccupation or worry about having a serious illness, often based on misinterpretation of bodily symptoms.