In a Demand-Pull Inflation, Money Wage Rates Rise Because

question 16

Multiple Choice

In a demand-pull inflation, money wage rates rise because

• A) a decrease in aggregate demand creates a labour surplus.
• B) an increase in aggregate demand creates a labour shortage.
• C) a decrease in aggregate demand creates a labour shortage.
• D) an increase in aggregate demand creates a labour surplus.
• E) an increase in aggregate supply creates a labour shortage.

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