Inflation caused by a cut in income tax is an example of a) expectations-generated inflation b) hyperinflation c) demand-pull inflation d) cost-push inflation

Discussion Question Ch 12     33 unread replies.33 replies. Discussion Question (DQ) Chapter 12:   According to the textbook,  How do economists use the equation m * v = p * yR to explain the cause of inflation?   Required: In not less than 300 words and not more than 600 words, use a term(s) or idea(s) or concept(s) from the chapter of your textbook you are currently assigned to respond to the DQ. Every response should have three elements: a textbook term(s); section citation and correct grammar and punctuation Use of a TEXTBOOK term(s) or idea(s) or concept(s) from the assigned chapter textbook . Textbook citation—however, since your e-textbook does not have page numbers you can cite to a relevant chapter “section” (see below for an example of what a chapter sections look like). For example, you could say “I used the comparative advantage section’s discussion of _________ to answer this question.)

In which of the following situations will demand pull inflation fall? a) Rising aggregate supply b) Reduced taxes c) Rising incomes d) Decreased imports e) Aggregate demand rising with aggregate supply lags

What is inflation? A) A decrease in the general price level B) An increase in the general price level C) A decrease in the money supply D) An increase in the money supply