A Major Factor Leading to Demand-Side Inflation Is

question 37

Multiple Choice

A major factor leading to demand-side inflation is

• A) the existence of unions and firms with considerable market power.
• B) the presence of considerable slack in the economy.
• C) increases in spending when resources are fully employed.
• D) significant increases in the prices of important materials (for example, crude oil) in the short run.
• E) rapid growth of an economy's potential output.

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Definitions:

Numbered Units

Quantitative values assigned to items or units in order to denote quantity, order, or position.

Youngest

This term relates to the latest or most recently developed strata or earth materials in geological studies.

Ocean Basins

large depressions on the Earth’s surface that are filled with ocean water.

Continents

Large continuous areas of land on Earth, which are currently identified as seven in number, including Africa, Antarctica, Asia, Australia, Europe, North America, and South America.