What is the crucial difference between inflation generated on the demand side versus inflation generated on the supply side?
A) Demand-side inflation is short-lived, while supply-side inflation lasts for a long time.
B) Demand-side inflation leads to budget surpluses, while supply-side inflation contributes to budget deficits.
C) Supply-side inflation is subject to control of policy makers, while demand-side inflation is beyond their reach.
D) Demand-side inflation is normally accompanied by rising real GDP, while supply-side inflation may be accompanied by falling real GDP.
Correct Answer:
Verified
Q41: If economic fluctuations originate on the supply
Q48: If the short-run Phillips curve is steep,
Q49: Which of the following could trigger supply-side
Q50: Figure 17-2 Q51: Demand-side inflation differs from supply-side inflation in Q52: An increase in AD will trigger more Q54: Figure 17-2 Q55: Stagflation can be defined as a situation Q57: Figure 17-3 Q58: The economy's self-correcting mechanism to eliminate a 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
![]()
![]()
![]()