Solved

The Difference Between Demand-Pull Inflation and Cost-Push Inflation Is That

Question 55

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions