With mild demand-pull inflation, the economy's output level would tend to be
A)pulled up by the increase in total spending.
B)pulled down by the decrease in total spending.
C)pulled up by the rising unemployment.
D)pulled down by the rising unemployment.

Question

Quizplus · Accepted Answer

Mild demand-pull inflation occurs when increased total spending in the economy leads to higher demand for goods and services, which in turn pulls up the economy's output level.

With Mild Demand-Pull Inflation, the Economy's Output Level Would Tend