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:

Time-Series Designs

Research designs that involve repeated measurements of dependent variables over time, both before and after a treatment or intervention, to assess change.

Selection Effects

Biases introduced into research when the participants or subjects are not randomly assigned, potentially leading to unrepresentative samples and skewed results.

Observations

The process of closely monitoring, recording, or noticing specific behaviors, actions, or phenomena, typically as a data collection method in research.

Cohort Design

A research design that follows a group (cohort) of individuals over time to study changes and outcomes, often used in epidemiology and social sciences.