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:

Labor Market

The supply and demand for labor, where employers seek to hire employees and employees seek jobs, and wages are determined.

Income-Maintenance Programs

Government programs designed to provide financial assistance to individuals or households to ensure a minimum level of income.

Aggregate Spending

The total amount of spending in an economy, including consumption, investment, government purchases, and net exports.

Medicare

In the United States, a national health coverage scheme available to individuals over 65, younger persons with specific disabilities, and those suffering from End-Stage Renal Disease.