Demand-Pull Inflation Is Characterised by

question 79

Multiple Choice

Demand-pull inflation is characterised by

• A) high levels of aggregate demand, which then pull prices down to lower levels.
• B) the short-run aggregate supply curve shifting to the right.
• C) rising prices and rising employment in the short run.
• D) the short-run aggregate supply curve shifting to the left.

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Definitions:

Market Price

The going rate for which a commodity or service can be traded or acquired in the market.

Put Option

A financial contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a specified time frame.

Exercise Price

The sum for which the bearer of an option has the privilege to acquire (with a call option) or dispose of (with a put option) the foundational asset.

Stock Price

The cost of purchasing a share of a company's stock, reflecting the market's valuation of the company at any given time.