Demand-Pull Inflation in the Short Run Raises the Price Level

question 17

Multiple Choice

Demand-pull inflation in the short run raises the price level and

• A)real wages.
• B)real output.
• C)the unemployment rate.
• D)nominal wages.

---

Definitions:

Significant Points

Key or important aspects, facts, or features that are noteworthy.

Higher Price

The strategy of setting the cost of a product or service above the average market price to signal higher quality or to cover higher production costs.

Market Segments

Market segments consist of individuals or entities grouped together based on shared traits or needs, which lead them to desire comparable products and services, reflecting similar preferences, attributes, or actions.

Broad Array

A wide range or selection of items or options available within a category or across different categories.