According to the demand-pull theory, what is responsible for inflation?
(A) Demand for goods and services exceeds existing supply.
(B) Too much money is in circulation.
(C) Producers raise prices to meet increased costs.
(D) The economy is in a wage-price spiral.
Answer: Demand for goods and services exceeds existing supply.
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There are several advantages that a market economy possesses. These do not include the fact that market economies:
A) tend to result in high living standards. B) tend to encourage greater economic growth. C) tend to prevent entrepreneurial activity that would result in large accumulations of wealth in the hands of a few people. D) none of the above is true
"Since the social sciences are not like the natural sciences, experiments are a waste of time." Comment on the above statement.
What will be an ideal response?