Which of the Following Can Create Demand-Pull Inflation

question 40

Multiple Choice

Which of the following can create demand-pull inflation?

• A) Excessive aggregate spending.
• B) Sharply rising oil prices.
• C) Higher labor costs.
• D) Recessions and depressions.

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Definitions:

Home Landscaping

The practice of altering the visible features of an area of land surrounding a home to enhance its appearance or functionality.

Price

The amount of money required to purchase a good or service.

Positive Externality

A benefit that is enjoyed by a third-party as a result of an economic transaction, without them necessarily being involved in the transaction.

Marginal Social Benefit

Sum of the marginal private benefit plus the marginal external benefit.