In a Demand-Pull Inflation,money Wage Rates Rise Because

question 161

Multiple Choice

In a demand-pull inflation,money wage rates rise because

• A)a decrease in aggregate demand creates a labor shortage.
• B)an increase in aggregate demand creates a labor surplus.
• C)an increase in aggregate demand creates a labor shortage.
• D)a decrease in aggregate demand creates a labor surplus.
• E)an increase in aggregate supply creates a labor shortage.

---

Definitions:

Contract Rate

The pre-agreed interest rate specified in a financial contract or loan agreement.

Bond Premium

The additional amount over the face value for which a bond is sold, representing the difference between its selling price and its face value.

EPS

Earnings Per Share, a financial ratio indicating the amount of profit attributed to each outstanding share of common stock, used to gauge a company's profitability.

Bond Indenture

A legal contract between a bond issuer and bondholders detailing the characteristics of the bond, such as its maturity date, coupon rate, and payment schedule.