« previous next »

Author Question: How are demand-pull and cost-push inflation reflected in terms of the AD-AS ... (Read 147 times)

jenna1

  • Hero Member
  • *****
  • Posts: 568
on: Jun 30, 2018
How are demand-pull and cost-push inflation reflected in terms of the AD-AS model?

Question 2

When the Fed decreases the money supply, interest rates:
 a. rise.
  b. fall.
  c. are unaffected.
  d. rise and then fall.
  e. fall and then rise.


Silverbeard98

  • Sr. Member
  • ****
  • Posts: 355
Reply #1 on: Jun 30, 2018
Answer to Question 1

Demand-pull inflation is reflected as a rightward shift of the AD curve that expands real GDP but also increases the price level. Cost-push inflation is reflected as a leftward shift of the AS curve which drives the price level up.

Answer to Question 2

a


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Terms Used for Trunk and Limbs Terms Used for Trunk and Limbs
Relative Positional Terms Relative Positional Terms
a) Using the “claw” b) Isometric finger-pull exercise a) Using the “claw” b) Isometric finger-pull exercise
With the vehicle raised one foot (30 cm) off the ground, push down on the vehicle to check if it ... With the vehicle raised one foot (30 cm) off the ground, push down on the vehicle to check if it ...
Pull-ups to side of torso from iliac crest to shoulder. Slide palms up the side of the torso, ... Pull-ups to side of torso from iliac crest to shoulder. Slide palms up the side of the torso, ...
How to evaluate algebraic terms containing fractional exponents without a calculator How to evaluate algebraic terms containing fractional exponents without a calculator
Video: Brain Lobes Animation

For a complete list of videos, visit our video library