Demand-Pull Inflation and Cost-Push Inflation Both Lead to a Higher

question 3

True/False

Demand-pull inflation and cost-push inflation both lead to a higher price level and lower output.

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Definitions:

Labor Productivity

A measure of economic performance that calculates the amount of goods and services produced per hour of labor.

Mechanized Transportation

The use of machinery, such as cars, trains, and airplanes, to move goods and people over distances, significantly increasing efficiency and speed compared to traditional methods.

Buggy Whips

A product or service that has become obsolete due to technological advancements or changes in consumer preferences.

Demand

The interest and capacity of buyers to acquire a product or service for a certain cost.