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
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 -
b - full employment
c - a recession
(5)
a - increase
b - decrease
c - remain unchanged
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