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Expectations of Future Economic Conditions

Question 100

Multiple Choice

Expectations of future economic conditions:


A) can lead to both demand-pull and cost-push inflation.
B) can lead to demand-pull inflation but not cost-push inflation.
C) can lead to cost-push inflation but not demand-pull inflation.
D) cannot lead to demand-pull or cost-push inflation because expectations involve future prices, not current prices.

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