What Is the Crucial Difference Between Inflation Generated on the Demand

question 58

Multiple Choice

What is the crucial difference between inflation generated on the demand side versus inflation generated on the supply side?

• A)Demand-side inflation is short-lived, while supply-side inflation lasts for a long time.
• B)Demand-side inflation leads to budget surpluses, while supply-side inflation contributes to budget deficits.
• C)Supply-side inflation is subject to the control of policymakers, while demand-side inflation is beyond their reach.
• D)Demand-side inflation is normally accompanied by rising real GDP, while supply-side inflation may be accompanied by falling real GDP.

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A person or entity that receives a transfer of property, rights, or interest from another.

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Injunction

A court order requiring an individual to do or refrain from doing a particular act to prevent harm or injustice.