Cost Push Inflation Occurs When Aggregate Demand Increases

question 57

True/False

Cost push inflation occurs when aggregate demand increases.

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Definitions:

Extrinsic Freedom

Refers to freedom limited or determined by external factors or circumstances.

Determinists

The belief that all events, including moral choices, are determined completely by previously existing causes, in relation to the philosophical idea that every event or state of affairs, including every human decision and action, is the necessary result of antecedent states of affairs.

Free Choices

The ability or power to make decisions without constraints, enabling one to act on one's own volition.

Indeterminism

The doctrine that not all events, including moral choices, are determined by previously existing causes and that humans have the capability for free will.