In the short-run, demand-pull inflation increases:
A. Real wages, but in the long run only nominal wages
B. Nominal wages, but in the long run only real wages
C. Real output and the price level, but in the long-run only real output
D. Real output and the price level, but in the long-run only the price level
D. Real output and the price level, but in the long-run only the price level
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If the nominal interest rate is 3% and the inflation rate is 6%, the real interest rate is
a. 2% b. 3% c. -3% d. 9%
If occupational safety laws were changed so that firms no longer had to take expensive steps to meet regulatory requirements, we would expect that
a. the demand for products in this industry would increase. b. the market price of products in this industry would decrease in the short run but not in the long run. c. the firms in the industry would make a long-run economic profit. d. competition would force producers to pass the lower production costs on to consumers in the long run.