According to the Simple Extended AD-AS Model, Demand-Pull Inflation and Cost-Push

question 96

True/False

According to the simple extended AD-AS model, demand-pull inflation and cost-push inflation have
the same effect on output in the long run.

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Definitions:

Compounding Periods

Compounding Periods refer to the frequency with which interest is added to the principal balance of an investment or loan, affecting the total interest earned or paid.

Compound Interest

Interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods, leading to exponential growth.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed on an annual basis, affecting loans, mortgages, savings, and investments.

Discounted Cash Flow

A technique for determining the value of an investment by considering the future cash flows it is projected to generate, factoring in the time value of money.