With Mild Demand-Pull Inflation, the Economy's Output Level Would Tend

question 113

Multiple Choice

With mild demand-pull inflation, the economy's output level would tend to be

• A) pulled up by the increase in total spending.
• B) pulled down by the decrease in total spending.
• C) pulled up by the rising unemployment.
• D) pulled down by the rising unemployment.

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Definitions:

Government Bonds

Debt securities issued by a government to support government spending and obligations.

Savings Account

A bank account where people can deposit money to earn interest over time, with fewer withdrawal facilities.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water.

Discouraged Workers

Individuals who have stopped looking for employment due to repeated failure to find work, and are no longer counted as part of the labor force.