The difference between demand-pull inflation and cost-push inflation is that
A) demand-pull inflation is caused by movements of the aggregate supply curve; cost-push inflation is caused by changes in firms' costs of production
B) cost-push inflation is caused by movements of the aggregate demand curve; demand-pull inflation is caused by cyclical activity in the economy
C) demand-pull inflation is caused by movements of the aggregate demand curve; cost-push inflation is caused by movements of the aggregate supply curve
D) demand-pull inflation is caused by government deficit spending; cost-push inflation is caused by firms
E) demand-pull inflation is caused by foreign demand; cost-push inflation is caused by domestic production problems
Correct Answer:
Verified
Q128: What was the result of increased oil
Q129: Which of the following would lead to
Q130: Exhibit 7-2 Q131: Cost-push inflation is typically caused by an Q132: Inflation can be caused by Q134: Since the end of World War II,the Q135: Demand-pull inflation is associated with Q136: Which is true of cost-push inflation? Q137: During which of the following decades was Q138: If the CPI is 200,then the price
A)inward
A)increases in aggregate
A)decreasing aggregate demand
A)It occurs
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