In the Short-Run, Demand-Pull Inflation Increases

question 73

Multiple Choice

In the short-run, demand-pull inflation increases

• A)real wages, but in the long-run only nominal wages.
• B)nominal wages, but in the long-run only real wages.
• C)real output and the price level, but in the long-run only real output.
• D)real output and the price level, but in the long-run only the price level.

---

Definitions:

Asset

Resources owned by a company or individual that have economic value and can be converted into cash.

Parent-subsidiary Relationship

A corporate structure where one company (the parent) controls another company (the subsidiary) typically through ownership of a majority of its shares.

Partnership

A formal business enterprise where multiple individuals collaborate in management and profit distribution.

Cost Method

An accounting method where investments are recorded at their original purchase cost, without adjustment for increases or decreases in market value.