Demand-Pull Inflation Is Caused By

question 45

Multiple Choice

Demand-pull inflation is caused by:

• A)high unemployment of resources in the economy.
• B)increase in tax rates by the government.
• C)trade unions' pressure for wage hike.
• D)increased spending when the economy is producing at maximum capacity.
• E)the supply side of the market.

---

Definitions:

Attraction-Similarity Hypothesis

A theory suggesting that people are attracted to others who are similar to themselves in terms of attitudes, values, and interests.

Altruism

The practice of selflessly caring for the welfare of others, often at a cost to oneself.

Fundamental Attribution Error

The assumption that others act predominantly on the basis of their dispositions, even when there is evidence suggesting the importance of their situations.

Dispositions

Inherent qualities of mind and character that influence an individual's habitual responses and behavior.