Demand-pull and cost-push inflationary pressures

Assignment Help Business Economics

Reference no: EM131001274

Which of the following statements is false?

A. Cost-push inflation is a rise in the general price level due to higher input prices.

B. Cost-push inflation is a rise in the general price level due to the economy operating past or above potential output/income.

C. Demand-pull and cost-push inflationary pressures can initiate inflation in an economy.

D. Demand-pull and cost-push inflationary pressures can cause continued inflation in an economy as long as they continue unabated.

Reference no: EM131001274

Questions Cloud

What is the most they will pay to play the game : People with an initial wealth of 10 are offered a chance to play a game in which they win either 2 or 0, each with probability 1/2. If their utility function is given by the convex function u(x) = x2, what is the most they wi..

Draw a cash flow diagram from the company perspective : A manufacturing company invests $100,000 in a new piece of equipment. Operating expenses for this new piece of equipment is estimated to be $4,000 starting EOY1 and increasing by $200 per year at the EOY2 and for the next 9 additional years. Draw a c..

Uses natural gas as fuel for large multi-unit power plant : An electric utility uses natural gas as fuel for a large multi-unit power plant. With all units in-service, for a given hour the plant's fixed cost is $120,000 and its variable cost is $50 per megawatt demanded. What is the hourly demand in megawatts..

Explain the inequality in c by general reasoning : Use Jensen's inequality to show that a‾ (1ex? ) ≥ a‾x. Explain the inequality in (c) by general reasoning. Show that the inequalities in (b) and (c) are equalities at 0 interest.

Demand-pull and cost-push inflationary pressures : Cost-push inflation is a rise in the general price level due to higher input prices. Cost-push inflation is a rise in the general price level due to the economy operating past or above potential output/income. Demand-pull and cost-push inflationary p..

Suppose that an individual maximizes : Suppose that an individual maximizes u(x,y)=x1^a x2^b (α, β > 0) subject to the budget constraint p1x1 + p2x2 = y. Solve for x1 and x2 (the optimal values of x1 and x2, which are the demands for x1 and x2) Are x1 and x2 , normal or inferior? Does dem..

Compare two ethical decision-making models : Describe how you would demonstrate developmental and cultural sensitivity when addressing the legal and ethical issues presented. Use specific examples to illustrate your ideas

Firm rents a supply management system to hospitals : Your firm rents a supply management system to hospitals. You have received a buyout offer of $5 million. You forecast a 25 percent chance that you will have profits of $10 million, a 35 percent chance that you will have profits of $6 million, and a 4..

Prepare any necessary adjusting journal entries indicated : Prepare a bank reconciliation for the El Gato checking account at December 31, 2011.

User Account

All Pages