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    Economics Theory and Practice
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    Exam 4: Goals and Problems of the Macroeconomy: Employment, Prices and Production
  5. Question
    Demand-Pull Inflation Occurs When
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Demand-Pull Inflation Occurs When

Question 5

Question 5

Multiple Choice

Demand-pull inflation occurs when:


A) taxes are increasing.
B) the supply of money is falling.
C) the cost of factor inputs is increasing.
D) the economy is operating at or close to full employment.

Correct Answer:

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