Demand-Side Inflation Differs from Supply-Side Inflation in Which of the Following

question 135

Multiple Choice

Demand-side inflation differs from supply-side inflation in which of the following ways?

• A)Demand-side inflation has higher output; supply-side inflation has lower output.
• B)Demand-side inflation has lower output; supply-side inflation has higher output.
• C)Demand-side inflation is always followed by stagflation; supply-side inflation is always followed by demand-side inflation.
• D)Demand-side inflation has a self-correcting mechanism; supply-side inflation does not.

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Definitions:

Social Overhead Capital

Public capital investments in infrastructure like roads, schools, and hospitals, which are necessary for economic activity but not directly profitable.

Human Capital

Refers to the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Financial Capital

Economic resources measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or provide their services.

Peer Lending

A financing method where individuals lend and borrow money to each other directly without the intervention of traditional financial institutions.