Which one of the following can create a demand-pull inflation?
A) a sharp increase in the price of oil
B) higher wages negotiated by unions
C) a cut in the interest rate
D) a decrease in investment as a result of a decrease in expected future profits
E) a decrease in government expenditure on goods and services
Correct Answer:
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Q2: At full employment an increase in the
Q3: Demand-pull inflation occurs when
A)aggregate demand increases.
B)aggregate supply
Q5: Use the figure below to answer the
Q6: Use the figure below to answer the
Q7: Use the figure below to answer the
Q8: Use the figure below to answer the
Q9: Inflation resulting from an increase in aggregate
Q25: Suppose the economy is in long-run equilibrium
Q32: Which of the following would cause the
Q65: Suppose OPEC unexpectedly collapses, which leads to
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