-In the above figure, the movement from point A to B to C to D to E represents
A) demand-pull inflation resulting solely from wage responses to excess labor demand.
B) cost-push inflation resulting solely from wage responses to excess labor demand.
C) demand-pull inflation resulting from persistent increases in the quantity of money.
D) cost-push inflation resulting from persistent increases in the quantity of money.

Question

-In the above figure, the movement from point A to B to C to D to E represents
A) demand-pull inflation resulting solely from wage responses to excess labor demand. 
B) cost-push inflation resulting solely from wage responses to excess labor demand. 
C) demand-pull inflation resulting from persistent increases in the quantity of money. 
D) cost-push inflation resulting from persistent increases in the quantity of money.

Quizplus · Accepted Answer

The movement from point A to B to C to D to E represents demand-pull inflation, which is typically caused by persistent increases in the quantity of money, leading to increased demand for goods and services.

-In the Above Figure, the Movement from Point a to B