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:

Indirect Method

A technique in financial accounting to prepare the cash flow statement, whereby net income is adjusted for non-cash transactions and changes in working capital.

Sale Of Investments

The process of liquidating investments such as stocks, bonds, or real estate, often to generate cash.

Statement Of Cash Flows

A financial report summarizing the total cash inflows from a company's operational activities and outside investments, alongside the cash outflows for paying off its business operations and investments within a specific timeframe.

Schedule

A plan that lists events, tasks, or activities along with their intended times and dates.