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:

Case Prices

The cost for a bulk quantity of items, often used in the context of wholesale purchasing.

White Wines

Wines that are made from the fermentation of the non-coloured pulp of grapes, which can be green, yellowish, or golden.

Smallest IQR

The smallest range between the first and third quartiles in a dataset, indicating the tightest concentration of the middle half of the data.

Reaction Time

The time elapsed between the presentation of a stimulus and the subsequent response to it.