Demand-pull inflation is caused by
A) aggregate demand increasing along an upward sloping or a vertical aggregate supply curve.
B) aggregate demand decreasing along an upward sloping or a vertical aggregate supply curve.
C) aggregate demand increasing along a horizontal aggregate supply curve.
D) aggregate demand decreasing along a horizontal aggregate supply curve.
A
You might also like to view...
Suppose there are 100 firms in a market and all are identical. Firm A will hire 20 workers when the wage rate is $10, 25 workers when the wage rate is $9, and 30 workers when the wage rate is $8
The equilibrium wage rate for a number of years has been $9. If the wage rate falls to $8, we know that A) the quantity demanded for the market will increase to 3,000 workers. B) the quantity demanded for the market will increase to more than 3,000 workers. C) the quantity demanded for the market will increase to less than 3,000 workers. D) the quantity demanded for the market will increase, but we can't tell which of the above answers is correct.
An example of an explicit cost would be the wages that a business owner pays her employees
a. True b. False Indicate whether the statement is true or false