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A Major Factor Leading to Demand-Side Inflation Is

Question 1

Multiple Choice

A major factor leading to demand-side inflation is


A) the existence of unions and firms with considerable market power.
B) the presence of considerable slack in the economy.
C) increases in spending when resources are fully employed.
D) significant increases in the prices of important materials (for example, crude oil) in the short run.
E) rapid growth of an economy's potential output.

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