Demand-Pull Inflation

question 216

Multiple Choice

Demand-pull inflation

• A) occurs when prices of resources rise, pushing up costs and the price level.
• B) occurs when total spending exceeds the economy's ability to provide output at the existing price level.
• C) occurs only when the economy has reached its absolute production capacity.
• D) is also called cost-push inflation.

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Definitions:

Fugue

A psychiatric disorder characterized by reversible amnesia for personal identity, including the memories, personality, and other identifying characteristics of individuality.

Paranoia

A mental condition characterized by delusions of persecution or grandeur, often without reasonable evidence.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often reflecting a condition of excessive concern.

Depression

A condition relating to mental health, characterized by a constant feeling of depression or a lack of enthusiasm in activities, that severely impacts day-to-day life.