Demand-Pull Inflation in the Short Run Raises the Price Level

question 262

Multiple Choice

Demand-pull inflation in the short run raises the price level and

• A) real wages.
• B) real output.
• C) the unemployment rate.
• D) nominal wages.

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Definitions:

Direct Financing Capital Lease

A type of lease in which the lessor finances the leased asset, and all risks and rewards of ownership are transferred to the lessee, without actual transfer of ownership.

Finance Lease

A type of lease in which the lessee effectively takes on all the risks and rewards of ownership, though legally the asset remains owned by the lessor.

Lessors

Entities that lease an asset to a lessee, typically retaining ownership of the asset for the duration of the lease agreement.

Market Rent

The average rent that similar properties in the same area are fetching on the open market; used as a benchmark in lease agreements.