When aggregate demand increases faster than aggregate supply, prices go up. What is this an example of?
A. Demand-pull inflation
B. Cost-push inflation
C. Per-worker productivity
Deflation
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Which of the following MUST decline in order to slow demand-pull inflation?
A. Production capacity
B. Spending
C. Taxes
D. NNP(Net National Product)
Inflation occurs whenever:
Aggregate demand rises.
B. The price of any given commodity rises.
C. The average price of most goods and services rises.
D. The tax rate is lower than the government spending rate.
What is Inflation?
A. Inflation is a decrease in the general level of prices.
B. Inflation is an increase in the general level of prices.
C. Inflation is a number that that compares prices in one year with prices with some earlier base year.
D. Inflation is measured in percentage rates that helps people.
What is the definition of Deflation?
An increase in the general level of prices
B. A decrease in the general level of prices
C. The rate that banks make available to their business customers
D. Involves spending more money
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