In the Long Run, Demand-Pull Inflation Leads to

question 32

Multiple Choice

In the long run, demand-pull inflation leads to

• A) higher unemployment and a higher price level.
• B) lower real wages and higher unemployment.
• C) lower real output and no change in unemployment.
• D) a higher price level and no change in real output.

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Definitions:

Testate Succession

The legal process of distributing a deceased person's assets in accordance with their will.

Intestate Succession

The process by which the property of a deceased person is distributed when they die without a valid will, based on laws of the state or country.

Life Estate

An ownership interest in which the holder has the right to possess the property until her or his death.

Eminent Domain

The right of a government or its agent to expropriate private property for public use, with payment of compensation.