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"Inflation Gives Saudis Food for Thought" "My Boss Sent Me

Question 325

Multiple Choice

"Inflation Gives Saudis Food for Thought" "My boss sent me back to return the milk - it's too expensive," said the Pakistani driver for a middle-class Saudi family at the checkout counter of the Al-Othaim supermarket. ...Saudi Arabia is enjoying an unprecedented economic boom ...as sectors [have] increased activity to meet the big internal demand."
Www) ft.com, 1/18/2008
The type of inflation described in the story


A) begins with stagflation.
B) starts with an increase in aggregate demand.
C) is the result of money wage rate spiral.
D) starts with a decrease in aggregate demand.

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