Which of the following economic changes are consistent with demand-pull inflation? Check all that apply. Falling unemployment   Excessive issuance of money by the central bank   An increase in the price level

Economics For Today
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ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter17: Inflation
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Which of the following economic changes are consistent with demand-pull inflation? Check all that apply.
Falling unemployment
 
Excessive issuance of money by the central bank
 
An increase in the price level
Which of the following economic changes are consistent with demand-pull inflation? Check all that apply.
Falling unemployment
Excessive issuance of money by the central bank
An increase in the price level
Transcribed Image Text:Which of the following economic changes are consistent with demand-pull inflation? Check all that apply. Falling unemployment Excessive issuance of money by the central bank An increase in the price level
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Step 1

Demand-pull inflation occurs when there is an increase in aggregate demand for goods and services but there is no change in the aggregate supply of goods and services. This situation leads to an increase in the price level. 

 

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