'Demand-pull inflation' is caused by:
A) a recession.
B) high levels of aggregate demand in the short run.
C) an increase in the costs of production, which pulls prices higher.
D) wage increases that are higher than increases in productivity growth.
Correct Answer:
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Q100: During times of deflation, borrowers of money
Q101: 'Cost-push inflation' can be caused by:
A)a high
Q102: With 'cost-push inflation', initially:
A)the price level and
Q103: 'Cost-push inflation' is characterised by:
A)very high levels
Q106: Which of the following can cause cost-push
Q107: 'Cost-push inflation' can be caused by:
A)insufficient demand
Q108: 'Demand-pull inflation' is characterised by:
A)high levels of
Q109: If aggregate demand continues to increase when
Q110: An increase in real wages shifts the
Q148: What is the difference between demand-pull inflation
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