Demand-pull inflation Demand-pull inflation occurs when:       A.  input costs rise.     B.  unemployment is above the natural rate.     C.  people incorrectly forecast inflation.     D.  aggregate demand increases.

Q: Inflation expectations refer to the rate at which: Group of answer choices actual inflation exceeds…

A: Inflation refers to the rate of change in the market value of products and services over time.

Q: The Phillips curve is   A. a positive relationship between price stability and​ constant,…

A: The Phillips curve was derived by the economist A.W. Phillips. He studied the relationship between…

Q: What is the difference between cost push and demand-pull inflation? Using a diagram, explain why the…

A: Inflation (I) is the rise in the price (P) level prevailing in an economy or, in other words, it is…

Q: According to Friedman and Phelps, the unemployment rate is above the natural rate when actual…

A: The Philips curve is an economic model developed that shows us the negative relationship between the…

Q: Assuming prices and output are somewhat flexible, an increase in consumer spending will cause…

A: The assumption that prices and output(y) are flexible allows for changes in the equilibrium level as…

Q: Assuming prices are sticky in the short run, a decrease in useful government spending will cause…

A: Decrease in G shifts the AD curve to the left, leading to a lower real GDP and a lower price level…

Q: Using diagrammatic illustrations where necessary, write brief notes on the following concepts. i.…

A: Gross domestic product refers to the total amount of all the goods, and services produced in an…

Q: Asaaap

A: Cost-push inflation is a type of inflation that arises from increased costs of production, leading…

Q: There is a trade-off between unemployment and inflation when the aggregate   a) Supply curve is…

A: Philips curve:A Philips curve is a curve that explains the relationship between inflation and…

Q: If the economy is in long-term equilibrium and cost of energy for production increases, which of the…

A: The long-term equilibrium is determined where aggregate demand is equal to both the short-run and…

Q: True or False Since people buy a lot of food and oil (gasoline), we should pay most attention to…

A: Approach to solving the question: The student ought to think about inflation holistically including…

Q: Answer the attached question

A: The sustained rise in the price level of a selected basket of goods and services for a particular…

Q: Using diagrammatic illustrations where necessary, write brief notes on the following concepts. i.…

A: 1.Demand pull inflation Here aggregate demand increases due to increase in consumption of people.…

Q: Inflation is one macroeconomic phenomenon that policy makers watch closely and intervene to bring it…

A: ANSWEE   Disinflation occurs when there is deep recession leading to a sustained fall in demand .

Q: Explain in detail the differences between demand-pull inflation and cost-push inflation and their…

A: Inflation is continuous rise in general price level which reduces the purchasing power of people.…

Q: Assuming prices and output are somewhat flexible, an increase in worthless government spending will…

A: Government spending is a component of Aggregate Demand. With the increase in Government spending (…

Q: is inflation that results from a decrease in the aggregate supply curve while the aggregate demand…

A: Inflation refers to the general increase in the all over price in an economy.

Q: Rational expectations believe that a. the government must change government spending and taxes…

A: Human Beings make rational decisions. They weigh the pros and cons of all situations and then take a…

Q: identify one demand-pull factor and one cost-push factor then briefly explain whether you think the…

A: Inflation is the consistent rise in general price level over period of time . Inflation reduces the…

Q: Increases in the quantity of money can create demand-pull inflation. O True False

A: The answer to the question is as follows :

Q: Identify how each of the following individuals is influenced by unexpected inflation. a. A sales…

A: Inflation is the rate of increase in prices over a given period of time. When people are unaware of…

Q: In the short run, there is a positive relationship between   A. inflation and unemployment   B.…

A: In economics, the term short run usually refers to a comparatively short time span during which…

Q: Historically, there is a correlation between the inflation rate and real economic activity (such as…

A: Inflation refers to the increase in price of goods on a general level, throughout the economy.

Q: Inflation Part 1: Inflation Practice- Choose the most likely category for each of these situations…

A: Solution: Note: "Sorry", since you have posted multiple parts of a question, I will do only first…

Q: rapid structural change in the economy can lead to structural increase in both unemployment and…

A: Sustained rise in the price level is known as inflation.

Q: 1. The inflation-unemployment relationship The following graph shows the combinations of…

A: According to the Phillips curve there is an inverse relationship between inflation and unemployment.…

Q: The natural rate of unemployment   a. is constant over time.   b. does not depend on the rate at…

A: Unemployment is the situation where the workers who are willing to and able to work but unable to…

Q: If inflation rises unexpectedly by 5% which of the following economic actors are helped by the…

A: Inflation refers to the general increase in the price level in the economy and increases in the…

Q: Demand–pull inflation occurs when increases until equilibrium output exceeds the full employment…

A: Demand-pull inflation occurs when there is an increase in aggregate demand that exceeds the…

Q: Which of the following are likely consequences of rising inflation? Check all that apply. Savers…

A: The first part of the question is asking about the likely consequences of rising inflation.…

Q: Average inflation went up by 65.5% since the turn of the century while college tuition and fees…

A: Inflation Inflation is basicallly refers to the rate at which the value of a currency declines,…

Q: 1. Explain the factors that causes demand-pull inflation. 2. Explain the factors that causes…

A: Inflation refers to the  rise in general price level over period of time . here general price level…

Q: Compare ‘cost-push’ inflation from ‘demand-pull’ inflation by discussing their major sources.…

A: Cost-push inflation occurs when the level of price increases because of a rise in the production…

Q: The economy starts out at full-employment equilibrium. Some events then occur that generate…

A: Cost push inflation can be defined as inflation which occurs due to rise in input costs like rise in…

Q: In which of the following situations will demand pull inflation fall? a) Rising aggregate supply…

A: Demand-pull inflation refers to a type of inflation that occurs when aggregate demand in an economy…

Q: Inflation arises due to: Group of answer choices changes in real output, changes in nominal output,…

A: In an economy, inflation is an economic term to describe a rise in the market price of commodities…

Q: One of the fiscal measures of dealing with inflation is: a. Implement a budget surplus b. Operate a…

A: Inflation refers to the increase in the general price level. Inflation is worrisome for the economy…

Q: With the aid of graphs, explain: (a) demand-pull inflation (b) cost-push inflation.

A: The inflation refers to the rise in the prices of the goods and services over a period of time. It…

Q: Describe an example of demand-pull inflation. And describe an example of cost-push inflation.

A: Inflation is a situation in which general price level rise. As a result of inflation, there is…

Q: The graph depicts a hypothetical economy's short-run Philips curve (SRPC). Please shift the SRPC to…

A: Step1: To adjust the Short-Run Phillips Curve (SRPC) for a decrease in expected inflation by 2…

Q: In this Decision Point you learned a little about inflation and inflation expectations. Apply what…

A: Real wage is the wage rate adjusted for inflation. Nominal wage does not account for inflation.

Q: Starting from a zero rate of inflation, suppose some event decreases aggregate demand. Use flow…

A: The wage-price spiral, also known as the price-wage spiral, is an economic phenomenon that occurs…

Q: Inflation measures the changes in the level of               in the economy. Demand-pull inflation…

A: Inflation measures the rise in the general price of goods and services over a period of time.…

Q: Purchases made now to avoid higher future prices can lead to: a. expectations inflation. b.…

A: Inflation is a general rise in the price level in an economy over a period of time.

Q: What are 3 examples of theoretical causes of inflation in the short run?

A: The inflation is the rise in the overall price level in the economy.

Q: According to the Phillips curve, the inflation rate depends on all of these EXCEPT: a. previously…

A: Phillips Curve shows the inverse relationship between inflation and unemployment rate given by A.W.…