Multiple Choice
The difference between demand-pull inflation and cost-push inflation is that
A) demand-pull inflation is caused by movements of the aggregate supply curve; cost-push inflation is caused by changes in firms' costs of production
B) cost-push inflation is caused by movements of the aggregate demand curve; demand-pull inflation is caused by cyclical activity in the economy
C) demand-pull inflation is caused by movements of the aggregate demand curve; cost-push inflation is caused by movements of the aggregate supply curve
D) demand-pull inflation is caused by government deficit spending; cost-push inflation is caused by firms
E) demand-pull inflation is caused by foreign demand; cost-push inflation is caused by domestic production problems
Correct Answer:

Verified
Correct Answer:
Verified
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