Which of the Following Can Start a Demand-Pull Inflation

question 241

Multiple Choice

Which of the following can start a demand-pull inflation?

• A) an improvement in technology
• B) a decrease in productivity
• C) an increase in imports
• D) None of the above can start a demand-pull inflation.

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Definitions:

Equilibrium Quantity

The amount of goods or services available and sought after at the balance price.

Scalping

The practice of buying tickets, securities, or commodities for immediate resale at higher prices, often to exploit short-term fluctuations.

Equilibrium Level

The point at which market supply equals market demand, leading to a stable situation where there is neither excess demand nor excess supply.

Equilibrium Price

The price at which the quantity of a good or service supplied is equal to the quantity demanded, resulting in no net surplus or shortage in the market.