Demand-Pull Inflation Occurs When

question 8

Multiple Choice

Demand-pull inflation occurs when:

• A) Aggregate supply is equal to aggregate demand.
• B) Aggregate demand is equal to output.
• C) Aggregate supply is greater than aggregate demand.
• D) Aggregate demand is greater than aggregate supply.

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Definitions:

Egocentrism

According to Piaget, the assumption that others view the world as one does oneself.

Stagnation

A state of inactivity or lack of progress, often leading to a lack of development or growth.

Climacteric Phase

A transitional stage in life, typically occurring in middle age, marked by a decline in reproductive hormones and associated with menopause in women.

Middle Adulthood

A stage of life, usually between the ages of 40 and 65, characterized by personal, professional, and family achievements and adjustments.