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Demand-Pull Inflation and Cost-Push Inflation Have Similar Effects on Real

question 114

True/False

Demand-pull inflation and cost-push inflation have similar effects on real output in the short run.


Definitions:

Government Purchases

Expenditures by the government sector on goods and services intended to satisfy public consumption and investment demands.

Inventory

The total amount of goods and materials held in stock by a business, warehouse, or store.

Gross Domestic Product

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a certain period of time.

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