Leading economic pundits predict inflation. Businesses believe these forecasts and raise prices accordingly. This scenario describes:
A) how positive output gaps create inflation.
B) demand-pull inflation.
C) how credible inflation expectations create inflation.
D) a situation where inflation expectations are higher than actual inflation.
Correct Answer:
Verified
Q12: When the output gap becomes more positive:
A)prices
Q13: Consumer confidence in the economy increases greatly,
Q14: In 2008, consumer confidence fell in the
Q15: A sudden unexpected situation of stagflation (a
Q16: In the United Kingdom, worries about Brexit
Q18: Cost-push inflation is inflation that arises from
Q19: When the U.S. dollar depreciates, this makes
Q20: Suppose aluminum prices rise in international markets.
Q21: Suppose rubber prices rise in international markets.
Q22: A negative supply shock causes:
A)a surplus in
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