________ Occurs When Increases in Aggregate Demand Are Not Matched

question 56

Multiple Choice

________ occurs when increases in aggregate demand are not matched by increases in aggregate supply.

• A)Demand-pull inflation
• B)Cost-push inflation
• C)Unemployment
• D)Deflation

---

Definitions:

Monopolist

An individual or entity that is the sole provider of a particular good or service in the market, enabling them to control prices.

Substitutes

Goods or services that can be used in place of each other, where the increase in price of one leads to an increase in demand for the other.

Imperfectly Competitive

Describes markets where individual sellers have some control over the price of their goods or services, as opposed to perfect competition where none exists.

Price Makers

Firms or entities that have the ability to influence the price of goods or services in the market due to their size, uniqueness of product, or market power.