Author Question: Demand-pull inflation is due to: a. minimum wage laws. b. labor cost increases. c. excess total ... (Read 36 times)

jerry coleman · **on:** Jun 30, 2018

Demand-pull inflation is due to:
a. minimum wage laws.
b. labor cost increases.
c. excess total spending.
d. tax increase.

Question 2

Discuss the differences between Keynesian and supply-side fiscal policies.

Sweetkitty24130 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

c

Answer to Question 2

The essential difference is that Keynesians attempt smooth out the business by changing aggregate demand (total spending). The supply-siders focus on creating greater incentives to work, save and invest in order to shift the aggregate supply curve to the right. Keynesian economics is essentially demand-side economics. Supply-side economics focuses on the supply side of the AD-AS model.