Demand-Pull Inflation Results from Continually Increasing the Quantity of Money

question 71

Multiple Choice

Demand-pull inflation results from continually increasing the quantity of money, which leads to continually

• A) decreasing aggregate demand.
• B) decreasing potential GDP.
• C) increasing aggregate supply.
• D) increasing potential GDP.
• E) increasing aggregate demand.

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Definitions:

Future Cash Receipts

Money expected to be received by a business or an individual in the future from transactions or agreements.

Bottleneck

A point of congestion in a production system where the demand outpaces the production capacity, leading to delays and reduced throughput.

Cross-Trained Employees

Individuals within an organization who have been trained in multiple skills or tasks, allowing them to perform a variety of roles as needed.

Throughput

The rate at which goods or services are produced or processed in a system.