Demand-Side and Supply-Side Inflations Differ in That,in One Case

question 37

Multiple Choice

Demand-side and supply-side inflations differ in that,in one case

• A) total real output rises, and in the other, it falls.
• B) the price level rises, and in the other, it falls.
• C) borrowers benefit, and in the other, savers benefit.
• D) businesses benefit, and in the other, householders benefit.
• E) inflation is temporary, and in the other, it is permanent.

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Definitions:

Net Operating Income

A measure of a company's profitability, calculated as the gross revenue minus operating expenses, excluding taxes and interest.

Contribution Margin Ratio

The percentage of each sales dollar that remains after variable costs are subtracted, indicating the portion contributing to covering fixed costs and generating profit.

Fixed Monthly Expenses

Recurring costs that do not vary in amount and are paid on a monthly basis, such as rent or loan payments.

Net Operating Income

Earnings from a company's core business operations, excluding deductions for interest and taxes.