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:

Carbon Cycle

The series of processes by which carbon compounds are interconverted in the environment, chiefly involving the incorporation of carbon dioxide into living tissue by photosynthesis and its return to the atmosphere through respiration, the decay of dead organisms, and the burning of fossil fuels.

Decomposer

Organism, usually a bacterium or fungus, that breaks down organic matter into inorganic nutrients that can be recycled in the environment.

Mushroom

A type of fungus characterized by a cap and stem, with many species producing edible or medicinal fruiting bodies.

Herbivore

Primary consumer in a grazing food chain; a plant eater.