Demand-Pull Inflation Is an Inflation That Results from an Initial

question 347

Multiple Choice

Demand-pull inflation is an inflation that results from an initial

• A) increase in aggregate demand.
• B) decrease in aggregate demand.
• C) increase in wage rates.
• D) increase in natural resource prices.

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Definitions:

Total Utility

The overall satisfaction or value a consumer gets from consuming a certain quantity of goods or services.

Marginal Utility

The added satisfaction a consumer gets from having one more unit of a good or service.

Demand Schedule

A table that lists the quantity of a good or service demanded by consumers at various price levels.

Marginal Utility Data

Information that quantifies the added satisfaction a consumer gains from consuming one more unit of a good or service.