Inflation That Is Caused by an Increase in Aggregate Demand

question 119

Multiple Choice

Inflation that is caused by an increase in aggregate demand without any change in aggregate supply is called

• A)demand-push inflation.
• B)demand-pull inflation.
• C)cost-push inflation.
• D)cost-pull inflation.

---

Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, reflected as a charge in the income statement.

Analytical Measures

Various calculations and metrics used to assess the performance, health, and financial status of a business.

Industry Type

A classification that categorizes companies and business activities into specific sectors based on similar production processes, products, or services.

Price-Earnings Ratio

A financial ratio that measures a company's current share price relative to its per-share earnings.