Foundations of Economics, Student Value Edition Plus MyLab Economics with eText -- Access Card Package (8th Edition)
8th Edition
ISBN: 9780134641843
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 29, Problem 7MCQ
To determine
China's experience as the result of rising
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Students have asked these similar questions
Demand-pull inflation arises due to
Part 2
A.
a higher price level.
B.
a decrease in the short-run aggregate supply.
C.
a depreciation of the US$.
D.
a decrease in the aggregate demand.
Part 3
Which of the following would create demand-pull inflation?
Part 4
A.
An increase in household income.
B.
A decrease in wages paid to workers.
C.
Increased international trade barriers.
D.
An increase in the real rate of interest.
Demand-pull inflation results from higher aggregate demand that [Select (1)]. As a result, output [Select (2)] as firms seek to meet this higher demand. This [Select (3)] the demand for workers and leads the economy towards [Select (4)], which causes the money wage to [Select (5)]. These higher costs of production cause prices to rise.
(1)
a - exceeds the economy's demand for goods and services
b - exceeds the economy's ability to supply goods and services
c - meets the economy's demand for goods and services
d - meets the economy's supply for goods and services
(2)
a - increases
b - decreases
c - remains unchanged
(3)
a - increases
b - decreases
(4)
a - unemployment
b - full employment
c - a recession
(5)
a - increase
b - decrease
c - remain unchanged
You are the chair of the president’s Council of Economic Advisers. There has been an extremely hot and dry summer due to climate change. As a result, crop production has fallen drastically. The president calls you to the White House to discuss the impact on the economy. Would you explain to the president that a sharp drop in U.S. crop production would cause inflation, unemployment, or both?
Chapter 29 Solutions
Foundations of Economics, Student Value Edition Plus MyLab Economics with eText -- Access Card Package (8th Edition)
Ch. 29 - Prob. 1SPPACh. 29 - Prob. 2SPPACh. 29 - Prob. 3SPPACh. 29 - Prob. 4SPPACh. 29 - Prob. 5SPPACh. 29 - Prob. 6SPPACh. 29 - Prob. 7SPPACh. 29 - Prob. 8SPPACh. 29 - Prob. 9SPPACh. 29 - Prob. 10SPPA
Ch. 29 - Prob. 11SPPACh. 29 - Prob. 1IAPACh. 29 - Prob. 2IAPACh. 29 - Prob. 3IAPACh. 29 - Prob. 4IAPACh. 29 - Prob. 5IAPACh. 29 - Prob. 6IAPACh. 29 - Prob. 7IAPACh. 29 - Prob. 8IAPACh. 29 - Prob. 9IAPACh. 29 - Prob. 10IAPACh. 29 - Prob. 1MCQCh. 29 - Prob. 2MCQCh. 29 - Prob. 3MCQCh. 29 - Prob. 4MCQCh. 29 - Prob. 5MCQCh. 29 - Prob. 6MCQCh. 29 - Prob. 7MCQ
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