Excess Consumer Demand Creates

question 12

Multiple Choice

Excess consumer demand creates:

• A) Demand-pull inflation
• B) Cost-push inflation
• C) Hyperinflation
• D) Deflation

---

Definitions:

Operating Income

Profit generated from core business operations, excluding expenses such as taxes and interest.

Absorption Costing

A bookkeeping approach that incorporates all expenses related to production, including direct materials, direct workforce, and variable along with fixed overhead costs, into the product's cost.

Income Reported

Refers to the total revenue recognized by an entity within a specific reporting period, often found in financial statements.

Operations

Refers to the day-to-day activities involved in running a business, including production, sales, and administration functions.