Demand-Side Inflation Is Most Likely to Occur When the Economy

question 4

Multiple Choice

Demand-side inflation is most likely to occur when the economy

• A) has substantial excess capacity.
• B) is approaching or operating at full employment.
• C) has an aggregate demand curve shifting to the left.
• D) has a horizontal aggregate supply curve.
• E) has labor productivity rising faster than wages.

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Definitions:

Conveying

The act of communicating or transmitting information, ideas, or feelings from one person or place to another.

Information Channel

The medium through which information is transmitted from one place, person, or group to another.

Upward Communication

The process by which information or feedback travels from lower levels of a hierarchy to higher levels within an organization.

Supervisors

Individuals in an organization responsible for overseeing and managing the activities and performance of a team or department.