At Full Employment, an Increase in the Quantity of Money

question 87

Multiple Choice

At full employment, an increase in the quantity of money (ceteris paribus) can start

• A)demand-pull inflation, as can an increase in government expenditure.
• B)demand-pull inflation, but an increase in government expenditure cannot.
• C)cost-push inflation, as can an increase in government expenditure.
• D)cost-push inflation, but an increase in government expenditure cannot.
• E)demand-pull and a cost-push inflation, as can an increase in government expenditure.

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Definitions:

Behavioral Changes

Alterations or modifications in the actions or reactions of an individual in response to external or internal stimuli.

Principles Of Learning

Fundamental guidelines or laws that describe how individuals acquire, modify, and retain knowledge and behaviors.

Maladaptive Practices

Behaviors or strategies that were initially beneficial but evolve into habits that are counterproductive or harmful to an individual's wellbeing.

Hereditary Principles

Fundamental concepts that explain the process by which traits and characteristics are passed from parents to offspring through genes.