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- A rightward shift in the macro aggregate demand curve tends to generate a ________ inflation and ________ output. Group of answer choices cost-push; lower cost-push; higher demand-pull; higher demand-pull; lowerUsing aggregate supply and demand curves illustrate the different effects on output of demand-pull and cost-push inflationDemand-pull inflation Demand-pull inflation occurs when: A. input costs rise. B. unemployment is above the natural rate. C. people incorrectly forecast inflation. D. aggregate demand increases.
- In which of the following situations will demand pull inflation fall? a) Rising aggregate supply b) Reduced taxes c) Rising incomes d) Decreased imports e) Aggregate demand rising with aggregate supply lagsIf consumer confidence falls, then aggregate demand shifts a. left, raising the inflation rate above its previous level. b. right, raising the inflation rate above its previous level. c. left, lowering the inflation rate below its previous level. d. right, lowering the inflation rate below its previous level.If aggregate demand increases; while aggregate supply remains the same: Group of answer choices surplus will cause the aggregate demand to shift to the left. shortages will cause cost-push inflation surplus will cause cost-push inflation surplus will cause demand-pull inflation shortages will cause demand-pull inflation
- Compare ‘cost-push’ inflation from ‘demand-pull’ inflation by discussing their major sources. Aggregate demand and aggregate supply curves for illustration are recommended.Inflation caused by a cut in income tax is an example of a) expectations-generated inflation b) hyperinflation c) demand-pull inflation d) cost-push inflationAs the economy moves to the right in Exhibit 3 along the upward-sloping aggregate supply curve the: Group of answer choices unemployment rate rises. unemployment rate falls. inflation rate falls. none of the answers are correct. PreviousNext
- Assess the validity of the following statement: An increase in government spending, the target inflation rate or the monetary base shifts the aggregate demand curve to the right.The Covid-19 pandemic shifted the aggregate supply and aggregate demand curves to the left. Did that increase or decrease real GDP, employment, and inflation rate? Explain your answer.An increase in aggregate demand will cause the unemployment rate to _______, the GDP growth rate to _______, and the inflation rate to _______. A. rise; rise, rise B. fall; rise, fall C. fall; rise, rise D. fall; fall, rise
