If Increases in Total Spending Are Not Offset by Increases

question 114

Multiple Choice

If increases in total spending are not offset by increases in the supply of goods and services, the average price level will rise.Which of the following factors is responsible for this rise?

• A)Cost-push inflation
• B)Fiscal deficit
• C)Demand-pull inflation
• D)Wage-push inflation
• E)Unemployment

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Definitions:

Budgeting

The process of creating a plan to spend your money, enabling you to determine in advance whether you will have enough money to do the things you need or want to do.

Planning Budget

A financial plan that estimates future revenues, expenses, and resource needs for a specific period.

Refurbishing Materials

Refurbishing materials are materials and supplies used in the process of renovating and restoring products or buildings to good condition.

Containers Refurbished

Refers to the process of repairing, cleaning, and restoring containers to a like-new condition for reuse.