Demand-Side Inflation Occurs When

question 44

Multiple Choice

Demand-side inflation occurs when

• A) increases in aggregate demand are not matched by increases in aggregate supply.
• B) increases in aggregate supply outstrip increases in aggregate demand.
• C) aggregate demand falls more rapidly than aggregate supply.
• D) long-run aggregate demand rises faster than short-run aggregate supply.

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Definitions:

Specificity Theory

A principle in sensory physiology proposing that different sensory qualities are signaled by different nerve fibers.

NutraSweet

A brand name for aspartame, an artificial sweetener used in various food and beverage products.

Neurons

Specialized cells in the nervous system that transmit information to other nerve cells, muscle, or gland cells.

Chemical Structure

The arrangement of atoms in a chemical substance and the chemical bonds that hold those atoms together, determining the substance's properties.