Demand-Side Inflation Is Normally Accompanied by

question 176

Multiple Choice

Demand-side inflation is normally accompanied by

• A)falling real GDP, while supply-side inflation may be accompanied by rising real GDP.
• B)falling real GDP; the same is true of supply-side inflation.
• C)rising real GDP, while supply-side inflation may be accompanied by falling real GDP.
• D)rising real GDP; the same is true of supply-side inflation.

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Definitions:

Social Regulation

The imposition of rules by government aimed at influencing the operation of businesses and individuals in areas such as health, safety, and environmental protection.

Bureaucrats

Officials and administrators working within the government, often perceived as being concerned with procedural correctness at the expense of people's needs.

Federal Foundation

An organization created by the federal government or receiving significant funding from it to support public purposes.