Inflation That Is Caused by an Increase in Aggregate Demand

question 212

Multiple Choice

Inflation that is caused by an increase in aggregate demand which is not matched by an increase in aggregate supply is called

• A) demand-push inflation.
• B) demand-pull inflation.
• C) cost-push inflation.
• D) cost-pull inflation.

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Definitions:

Adjustments

Changes made to preliminary financial statement figures to correct errors, account for prepayments, accruals, or to reflect a more accurate representation of the financial position.

Acquisition Method

An accounting technique used in consolidating the financial statements of a group in which a new acquisition is included.

Business Combinations

Transactions in which one entity gains control over one or more other businesses, including mergers, purchases of net assets, and consolidations.

AASB 3

Refers to the Australian Accounting Standards Board standard that outlines the requirements for the accounting of business combinations, including the recognition and measurement of assets, liabilities, non-controlling interest, and goodwill.