Demand-Pull Inflation Occurs When

question 90

Multiple Choice

Demand-pull inflation occurs when

• A)increases in aggregate demand are not matched by increases in aggregate supply.
• B)increases in aggregate supply outstrip increases in aggregate demand.
• C)aggregate demand falls more rapidly than aggregate supply.
• D)long-run aggregate demand rises faster than short-run aggregate supply.

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Definitions:

Monopsony Power

A market situation where there is only one buyer for a product or service, giving that buyer significant control over the market.

Deferred Benefit Plan

A type of retirement plan that allows participants to postpone receiving retirement benefits until a specific future date, often to optimize tax benefits.

Elective Surgical Procedure

A surgery that is scheduled in advance because it does not involve a medical emergency.

Equilibrium Price

The cost at which the amount of a product or service that buyers want matches the amount that sellers provide, resulting in a balanced market situation.