In a persisting demand-pull inflation,
A) aggregate supply decreases and aggregate demand increases.
B) aggregate demand decreases and aggregate supply decreases.
C) aggregate demand increases and potential GDP decreases.
D) aggregate supply increases and aggregate demand increases.
E) None of the above answers is correct.
A
You might also like to view...
Rent-seeking behavior results in
a. increased economic activity by promoting efficiency. b. lower economic activity by diverting resource to less-productive uses. c. a more equitable distribution of income and wealth. d. lower prices throughout the economy. e. greater income and wealth in the private sector.
When the supply of a good decreases and the demand for the good remains unchanged, consumer surplus
a. decreases. b. is unchanged. c. increases. d. may increase, decrease, or remain unchanged.