« previous next »

Author Question: How are demand-pull and cost-push inflation reflected in terms of the AD-AS ... (Read 146 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?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

No drugs are available to relieve parathyroid disease. Parathyroid disease is caused by a parathyroid tumor, and it needs to be removed by surgery.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

Myocardial Oxygen supply and demand Myocardial Oxygen supply and demand
Typical Startup Cost Categories Cont. Typical Startup Cost Categories Cont.
Short-wavelength flux is reflected by Earth Short-wavelength flux is reflected by Earth
The demand for oil can be reduced significantly with the introduction of new higher vehicle mileage The demand for oil can be reduced significantly with the introduction of new higher vehicle mileage
A company that makes cell phones has the following cost structure. They have fixed costs of ... A company that makes cell phones has the following cost structure. They have fixed costs of ...
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price. Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
Video: Origin of organelles Animation

For a complete list of videos, visit our video library