In the Short-Run, Demand-Pull Inflation Increases

question 73

Multiple Choice

In the short-run, demand-pull inflation increases

• A)real wages, but in the long-run only nominal wages.
• B)nominal wages, but in the long-run only real wages.
• C)real output and the price level, but in the long-run only real output.
• D)real output and the price level, but in the long-run only the price level.

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Definitions:

Economic Development

The process by which the overall health, well-being, and academic level of a nation or region is improved through industrial, political, and social changes.

Birthrates

are statistical measures showing the number of live births per 1,000 people in a population over a given period of time, reflecting fertility trends.

Peripheral Countries

Refers to nations that are on the margins of the global economy, often characterized by lower levels of industrialization, weaker state institutions, and greater dependence on core countries.

World Systems Theory

A sociological perspective that emphasizes the economic and political interconnectedness and dependency of countries globally, often classifying them into core, semi-peripheral, and peripheral nations.