Demand-Side Inflation Differs from Supply-Side Inflation in the Following Way

question 32

Multiple Choice

Demand-side inflation differs from supply-side inflation in the following way:

• A)demand-side inflation has higher output; supply-side inflation has lower output.
• B)demand-side inflation has lower output; supply-side inflation has higher output.
• C)demand-side inflation is always followed by stagflation; supply-side inflation is always followed by demand-side inflation.
• D)demand-side inflation has a self-correcting mechanism; supply-side inflation does not.

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