Increases in the price level resulting from an excess of demand over output at the existing price level, caused by an increase in aggregate demand ?
Correct answer: D. Demand pull inflation
- A. None
- B. Stagflation
- C. Both
- D. Demand pull inflation
Explanation
Demand-pull inflation occurs when aggregate demand rises beyond the economy's current output capacity, allowing sellers to raise prices. Stagflation instead combines inflation with stagnant output and unemployment.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
Practise Agricultural Economics and Extension
190 free Agricultural Economics and Extension MCQs from Agriculture, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Agriculture questions like this
Agriculture is on this paper prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for it.
More Agricultural Economics and Extension questions
A decrease in the governmentally defined value of currency ____________________?
An industry in which expansion through the entry of firms decreases the prices, firms in the industry must pay for resources and there fore decreases their production costs ?
Cooperation among unification of the economies of different nations is termed as_____________________?
Failure to achieve full production is called ?
The sacrifice of some or all one economic goal, good, or services to achieve some other goal, good or service is called__________________?
An asset set aside for future use is termed as_______________________?