Explain in detail the differences between demand-pull inflation and cost-push inflation and their impact on the economy.

Q: 15. During the 1960s, most economists believed that expansionary macro-policy Group of answer…

A: The correct statement is “Most economist believed that expansionary macro-policy that caused…

Q: Distinguish between demand-pull inflation and cost-push inflation. Which of the two types is most…

A: Inflation refers to an abnormal hike in the price level of goods and services in the economy, so if…

Q: Assuming prices and output are somewhat flexible, an increase in consumer spending will cause…

A: The assumption that prices and output(y) are flexible allows for changes in the equilibrium level as…

Q: Assuming prices are sticky in the short run, a decrease in useful government spending will cause…

A: Decrease in G shifts the AD curve to the left, leading to a lower real GDP and a lower price level…

Q: Describe each of these two types of inflation. text are cost-push inflation and demand-pull…

A: Demand-pull inflation- Inflation is defined as an increase in the general price level of an economy.…

Q: Based on the concept of demand-pull inflation, when the economy is at, or very close to,…

A: Demand-pull inflation explains the imbalance between the aggregate demand and the aggregate supply…

Q: Explain the two costs of inflation from the perspective of economists

A: Meaning of Inflation: Inflation generally arises when there is an excessive increase in the level…

Q: Which of the following describes the cause of a  sustained inflation?

A: Various causes leads to sustainable expansion.

Q: Examine the causes of at least two (2) main types of inflation

A: Inflation is commonly described as a rise in the cost of goods and services in a given economy over…

Q: If the economy is in long-term equilibrium and cost of energy for production increases, which of the…

A: The long-term equilibrium is determined where aggregate demand is equal to both the short-run and…

Q: Determine whether the following items increase or decrease inflation as they affect aggregate…

A: Introduction: Aggregate demand is a way of analyzing a country's entire demand for goods and…

Q: Distinguish between demand-pull inflation and cost-push inflation. Which of the two types is most…

A: Inflation refers to the increase in the general price level. The quantity demanded and quantity…

Q: Inflation does not affect all prices equally.  This ragged inflation causes relative-price…

A: Inflation is the overall increase in the general price level in an economy. It, in a way, represents…

Q: Inflation is one macroeconomic phenomenon that policy makers watch closely and intervene to bring it…

A: ANSWEE   Disinflation occurs when there is deep recession leading to a sustained fall in demand .

Q: Which statement is CORRECT? The Consumer Price Index is considered the best measure of long-run,…

A: )  Consumer price index (CPI) is defined as the average change in the prices of fixed baskets of…

Q: This month, Inflation in Turkey reached nearly 20%. The central bank's repeated interest-rate cuts…

A: Government and central bank have the responsibility to maintain financial and economic stability in…

Q: Suppose that government decides to support the firms for their investments in research and the…

A:

Q: Inflation caused by a cut in income tax is an example of a) expectations-generated inflation b)…

A: In an economy, inflation can be caused due to different market conditions such as supply-side or…

Q: In every election year, politicians sing their own praises of having stabilized prices through the…

A: Persistent rise in prices of goods and services leafs to inflation. When aggregate demand exceeds…

Q: aggregate demand and aggregate supply

A: The aggregate demand (AD) curve represents the total quantity of goods and services demanded in the…

Q: Naked Economics: Undressing the Dismal Science Book by Charles Wheelan   Please refer to the chapter…

A: Answer: Inflation refers to the increase in the general price level in the economy. During…

Q: a government is facing high inflation, then it will take an action as following:   I. increase…

A: Answer: Correct option: 1 (increase taxes, increase discount rate) Explanation: Inflation refers to…

Q: Why governments / decision makers try to achieve the stable economic growth and lower inflation?…

A: When inflation rises, unemployment falls. When aggregate supply or aggregate demand increases,…

Q: Suppose that government decides to support the firms for their investments in research and the…

A: Increase in productivity decreases production cost, so aggregate supply will rise, shifting SRAS…

Q: conservative" central banker cares   Select one:   A.   less about inflation and more about…

A: When talking about Central Bank, it can be said that it is different from other banking institutions…

Q: Which of these is not a factor that causes demand-pull inflation? a. Private consumption b.…

A: Demand is the sum of the total quantity of commodities that the consumers are willing to purchase at…

Q: Define inflation. Explain why inflations needs to be managed

A: The economics as a study is a vast area of study which is based upon the basic idea of scarcity of…

Q: Using appropriate diagrams, explain the difference between demand-pull and cost- push inflation.

A: Inflation:  Inflation is simply the rise in the general price level of goods and services over a…

Q: Below are two different quotes about inflation: “Inflation is always and everywhere a monetary…

A: Inflation: Inflation is an economic concept that is defined as a rise in the general price level of…

Q: how does the fiscal policy handle the major macroeconomic failures of inflation?

A: Fiscal policy refers to the alteration of government's revenues (primarily tax revenue) and…

Q: Explain TWO costs of inflation from an economist’s perspective.

A: Two costs of inflation are :  1. Price system is distorted by Inflation. Inflation is the increase…

Q: Describe an example of demand-pull inflation. And describe an example of cost-push inflation.

A: Inflation is a situation in which general price level rise. As a result of inflation, there is…

Q: Suppose that the inflation rate remains constant while output increases and the unemployment rate…

A: The aggregate supply and aggregate demand model shows the relationship between real GDP and price…

Q: (a)‌Discuss‌ ‌TWO‌ ‌(2)‌ ‌types‌ ‌of‌ ‌unemployment‌ ‌and‌ ‌provide‌ ‌a‌ ‌relevant‌ ‌example‌ ‌for‌…

A: Unemployment occurs when the people belonging to the labor force of an economy are willing to work…

Q: Why is there no upward or downward pressure on the inflation rate when the economy is at full…

A: Inflation refers to the rise in general price levels in an economy. Philips curve shows the…

Q: what are positive and negative effect of demand pull inflation with explanation

A: Inflation is the process of abnormal hike in the general price level of the economy. This means that…

Q: Explain what we can understand by expected inflation, inflation due to an increase in aggregate…

A: Inflation in an economy is referred to be as a rise in the general price level of goods and…

Q: Chapter 14: Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment Question:…

A: Ques 14) In the case of demand-pull inflation, other things being equal: the inflation rate rises…

Q: which of the following is true Select one: a. When the actual rate of unemployment is low than…

A: Answer: option b (natural rate of unemployment is the rate of unemployment required to keep the…

Q: write brief notes on the following concepts. i. Demand-pull and cost-push inflation  ii. Consumer…

A: Note: Since you have asked multiple questions, we will solve the first 3 question for you. If you…

Q: What is the difference between cost-push inflation and demand-pull inflation? Explain the…

A: Meaning of Demand-Pull Inflation  Demand Pull Inflation emerges when the total demand goes up…