Multiple Choice
What is the crucial difference between inflation generated on the demand side versus inflation generated on the supply side?
A) Demand-side inflation is short-lived, while supply-side inflation lasts for a long time.
B) Demand-side inflation leads to budget surpluses, while supply-side inflation contributes to budget deficits.
C) Supply-side inflation is subject to control of policy makers, while demand-side inflation is beyond their reach.
D) Demand-side inflation is normally accompanied by rising real GDP, while supply-side inflation may be accompanied by falling real GDP.
Correct Answer:
Verified
Correct Answer:
Verified
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