What is “demand-pull” inflation?
What will be an ideal response?
“Demand-pull” inflation is the traditional view that inflation is caused by growing total demand bidding up the prices of output in a period of nearly full or full employment.
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Logrolling refers to
a. vote trading among legislators. b. the tendency of voters to free-ride on the payment for public goods. c. the power of well-organized interest groups. d. the tendency of legislators to favor the interests of the timber (logging) industry.
Suppose the income tax rate schedule is 0 percent on the first $10,000; 10 percent on the next $20,000; 20 percent on the next $20,000; 30 percent on the next $20,000; and 40 percent on any income over $70,000. Family A earns $28,000 a year and Family B earns $65,000 a year. Both receive a ten percent raise. What is the marginal tax rate of each and what is the extra tax paid by each after the raise?
A) Family A: 10 percent marginal tax rate and $280 in extra taxes; Family B—30 percent marginal tax rate and $1950 in extra taxes. B) Family A: 10 percent marginal tax rate and $420 in extra taxes; Family B—30 percent marginal tax rate and $2275 in extra taxes. C) Family A: 20 percent marginal tax rate and $360 in extra taxes; Family B—40 percent marginal tax rate and $2100 in extra taxes. D) Family A: 20 percent marginal tax rate and $560 in extra taxes. Family B—40 percent marginal tax rate and $2600 in extra taxes.