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In the Short Run, Demand-Pull Inflation Will Drive Up the Price

question 153

True/False

In the short run, demand-pull inflation will drive up the price level and increase real output, but in the long run, only the price level will rise.


Definitions:

National Bureau Of Economic Research

An American private nonprofit research organization that analyzes economic data and trends to determine economic cycles and policies.

Industrial Production

A measure of the output of the industrial sector of the economy which includes manufacturing, mining, and utilities.

Aggregate Supply

The total supply of goods and services that companies in an economy plan on selling during a specific time period.

Deflation

A reduction in the general price level of goods and services in an economy over a period of time.

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