-In the Above Figure, the Movement from Point a to B

question 64

Multiple Choice

-In the above figure, the movement from point A to B to C to D to E represents

• A) demand-pull inflation resulting solely from wage responses to excess labor demand.
• B) demand-pull inflation resulting from persistent increases in the quantity of money.
• C) cost-push inflation resulting solely from wage responses to excess labor demand.
• D) cost-push inflation resulting from persistent increases in the quantity of money.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activities within a certain scale, such as rent, salaries, and insurance.

Variable Costs

are expenses that change in proportion to the activity of a business, such as sales volumes, including costs of goods sold and direct labor costs.

Selling Price

The actual price at which a product or service is sold to customers.

Labor Cost

The total amount of financial compensation, benefits, and taxes companies must pay for their employees' work.