Demand-Pull Inflation

question 65

Multiple Choice

Demand-pull inflation

• A)occurs when prices of resources rise, pushing up costs and the price level.
• B)occurs when total spending exceeds the economy's ability to provide output at the existing price level.
• C)occurs only when the economy has reached its absolute production capacity.
• D)is also called cost-push inflation.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.