'Demand-Pull Inflation' Is Caused By

question 84

Multiple Choice

'Demand-pull inflation' is caused by:

• A)a recession.
• B)high levels of aggregate demand in the short run.
• C)an increase in the costs of production, which pulls prices higher.
• D)wage increases that are higher than increases in productivity growth.

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Definitions:

Organizational Flexibility

The ability of a company or organization to adapt quickly to changes in its environment, including market trends, technologies, and internal dynamics.

Limited Liability

A legal structure where an individual's financial risk is limited to a fixed amount, typically the value of their investment in a company.

Perpetual Existence

A term used to describe a company's ability to continue operating indefinitely unless it decides to terminate.

Sole Proprietorship

A business owned and operated by a single individual, with no distinction between the business and owner legally or financially.