Demand-Pull Inflation Can Start

question 19

Multiple Choice

Demand-pull inflation can start

• A)aggregate demand increases.
• B)aggregate supply decreases.
• C)input costs rise.
• D)people incorrectly forecasting inflation.
• E)unemployment that is above the natural rate.

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Definitions:

Unpleasant Outcomes

Negative consequences or results that arise from specific actions or situations.

Reinforcement Theory

A psychological concept suggesting that behavior can be shaped by rewarding or punishing outcomes.

Law of Effect

A principle in psychology that behaviors followed by positive outcomes are likely to be repeated, while those followed by negative outcomes are not.

Premise

A premise is a previous statement or proposition from which another is inferred or follows as a conclusion.