To Prevent Demand-Pull Inflation

question 165

Multiple Choice

To prevent demand-pull inflation

• A) firms must refuse to increase wages.
• B) the Fed must not let the quantity of money persistently rise.
• C) the natural unemployment rate must increase.
• D) real GDP must increase.

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Definitions:

Expert Power

Influence wielded by an individual due to their expertise, skills, or knowledge, which others perceive as valuable.

Referent Power

A form of influence based on the attractiveness and charisma of the leader or influencing agent.

Expert Power

The influence one possesses as a result of expertise, skills, or knowledge, which others perceive as valuable or essential.

Referent Power

A form of influence based on the leader's personal traits, where followers identify with and wish to emulate the leader.