Demand-pull inflation:
A. occurs when prices of resources rise, pushing up costs and the price level.
B. occurs when total spending exceeds the economy's ability to provide output at the existing
price level.
C. occurs only when the economy has reached its absolute production capacity.
D. is also called cost-push inflation.
B. occurs when total spending exceeds the economy's ability to provide output at the existing
price level.
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The management of money and interest rates is called ________ policy and is conducted by a nation's ________ bank
A) monetary; superior B) fiscal; superior C) fiscal; central D) monetary; central
When nations specialize in their areas of comparative advantage and then trade with the rest of the world, the result is that
A) the average standard of living in the world will go down. B) the average standard of living in the world will go up. C) the world will move from a point on the production possibilities curve to a point inside the curve. D) worldwide economic efficiency will decrease.