Theoretically,one Can Distinguish a Demand-Pull Inflation from a Cost-Push Inflation

question 34

Multiple Choice

Theoretically,one can distinguish a demand-pull inflation from a cost-push inflation by comparing

• A)how fast prices rise relative to wages.
• B)the unemployment rate with its natural rate level.
• C)when prices rise relative to wages.
• D)government debt to real GDP.

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Definitions:

Firm-Specific Risk

Firm-specific risk refers to the risk associated with events or factors that are unique to a particular company, which can affect its stock price.

Market Risk

The risk of losses in financial markets arising from movements in market prices.

Stocks

Financial securities representing partial ownership in a company, allowing investors to claim on the company's assets and earnings.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees. It's a contract between an individual and an insurance company.