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:

Rating Scale

A set of categories designed to elicit information about a quantitative or a qualitative attribute.

Likert-Type Scale

A psychometric scale often used in questionnaires, where respondents specify their level of agreement to a statement typically in a five or seven-point scale.

Empathic Responses

Emotional reactions that show an understanding of and compassion for another's situation, feelings, and motives.

Graphic Scale

A measurement tool that uses a line or visual representation to depict the range of responses, allowing individuals to mark their position along the continuum.