The Difference Between Demand-Pull Inflation and Cost-Push Inflation Is That

question 55

Multiple Choice

The difference between demand-pull inflation and cost-push inflation is that

• A)demand-pull inflation is caused by movements of the aggregate supply curve; cost-push inflation is caused by changes in firms' costs of production
• B)cost-push inflation is caused by movements of the aggregate demand curve; demand-pull inflation is caused by cyclical activity in the economy
• C)demand-pull inflation is caused by movements of the aggregate demand curve; cost-push inflation is caused by movements of the aggregate supply curve
• D)demand-pull inflation is caused by government deficit spending; cost-push inflation is caused by firms
• E)demand-pull inflation is caused by foreign demand; cost-push inflation is caused by domestic production problems

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Definitions:

Transportation

The movement of people or goods from one place to another using various modes such as vehicles, trains, ships, or airplanes.

Communication

The process of exchanging information, ideas, feelings, and messages between individuals or groups, through various modes such as speech, writing, or signals.

Workingmen's Parties

Early political groups in the United States, active in the 1820s and 1830s, that advocated for the rights and interests of working-class men, including calls for shorter workdays and the abolition of debtor prisons.

Machinery

Tools, equipment, and devices that use mechanical power and are designed to perform specific tasks, significantly enhancing productivity and efficiency in various industries.