Which of the following is a change that would NOT start a demand-pull inflation? A) an increase in exports B) an increase in the quantity of money C) an increase in labor productivity D) an increase in government expenditure on goods and services

Question

Quizplus · Accepted Answer

An increase in labor productivity would increase the supply of goods and services, allowing for more output to be produced at a lower cost. This would not cause a demand-pull inflation as it would not result in an increase in the overall demand for goods and services. Options A, B, and D would all lead to increases in aggregate demand, which could cause demand-pull inflation.

Which of the Following Is a Change That Would