In a Persisting Demand-Pull Inflation

question 177

Multiple Choice

In a persisting demand-pull inflation

• A) short-run aggregate supply decreases and aggregate demand increases.
• B) aggregate demand and short-run aggregate supply both decrease.
• C) aggregate demand increases and long-run aggregate supply decreases.
• D) None of the above answers are correct.

---

Definitions:

Equipment

Tangible assets used in operations, such as machinery or office equipment, not intended for sale.

Land

A real estate asset representing a parcel of earth's surface, its resources, and all its permanent fixtures.

Net Sales

Total sales revenue minus returns, discounts, and allowances for goods that are damaged or missing, defining a company's net sales.

Gross Profit

The financial gain obtained after subtracting the cost of goods sold from total sales revenue.