Answered: Demand–pull inflation occurs when…

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Demand–pull inflation occurs when increases until equilibrium output exceeds the full employment level.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Unemployment and Cost of Unemployment

Unemployment is the state of being unemployed, even when an individual is actively seeking work opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed.

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Demand–pull inflation occurs when

increases until equilibrium output exceeds the full employment level.

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which one is true Demand‑pull inflation is caused by a decrease in short‑run aggregate supply to an equilibrium point below full employment. an increase in aggregate demand to an equilibrium point below full employment. a decrease in short‑run aggregate supply to an equilibrium point beyond full employment. an increase in aggregate demand to an equilibrium point beyond full employment. Cost‑push inflation is caused by an increase in aggregate demand to an equilibrium point beyond full employment. an increase in aggregate demand to an equilibrium point below full employment. a decrease in short‑run aggregate supply to an equilibrium point beyond full employment. a decrease in short‑run aggregate supply to an equilibrium point below full employment.