Question 1
Wages and prices chasing each other as aggregate demand continually shifts to the right and aggregate supply continually shifts to the left is called
◦ demand-pull inflation.
◦ structural inflation.
◦ cost-push inflation.
◦ wage-price spiral.
Question 2
Inflation caused by a rise in oil prices is an example of
◦ demand-pull inflation.
◦ expectations-generated inflation.
◦ cost-push inflation.
◦ hyperinflation.