Demand-side inflation differs from supply-side inflation in which of the following ways?
A) Demand-side inflation has higher output; supply-side inflation has lower output.
B) Demand-side inflation has lower output; supply-side inflation has higher output.
C) Demand-side inflation is always followed by stagflation; supply-side inflation is always followed by demand-side inflation.
D) Demand-side inflation has a self-correcting mechanism; supply-side inflation does not.
Correct Answer:
Verified
Q40: If expectations are rational, inflation can be
Q41: If economic fluctuations originate on the supply
Q42: Restricting demand will lower inflation but
A)aggravate the
Q43: Inflation can be caused by rapid growth
Q44: The economy's self-correcting mechanism
A)tends to push unemployment
Q46: Figure 33-2 Q47: Reducing aggregate demand to fight inflation will Q48: Stimulating demand will improve the unemployment picture Q49: Figure 33-1 Q50: If people have _, an announced monetary
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents