Demand-pull inflation is due to:
a. minimum wage laws.
b. labor cost increases.
c. excess total spending.
d. tax increase.
c
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If input prices rise as industry output expands, then a perfectly competitive firm's marginal cost and average cost curves will: a. shift upward
b. shift downward. c. not shift. As the firm increases production, however, costs increase as the firm moves upward to the right along these curves. d. not shift. As the firm increases production, however, costs decrease as the firm moves downward to the left along these curves.
]If consumers become more optimistic, which of the following is the most likely in the short run?
a. A decrease in output, a decrease in money demand, and a decrease in the interest rate. b. An increase in output, an increase in money demand, and an increase in the interest rate. c. An increase in output, an increase in money demand, and a decrease in the interest rate. d. A decrease in output, an increase in money demand, and a decrease in the interest rate. e. An increase in output, a decrease in money demand, and a decrease in the interest rate.