Question 6 (1 point) Which of the following could cause continually rising price

Question

Question 6 (1 point)

Which of the following could cause continually rising prices?

Question 6 options:

an improvement in technology

lower oil prices

an increasing money supply

all of the above

Save

Question 7 (1 point)

Assuming flexible prices, if the federal funds rate falls less than expected, then the shift to the _____ by AD will be _____ than the shift to the _____ by AS in the short run.

Question 7 options:

left, greater, right

left, less, right

right, greater, left

right, less, left

Save

Question 8 (1 point)

Inflation arising from increased business confidence and investment is an example of

Question 8 options:

demand-pull inflation.

cost-push inflation.

both of the above.

neither of the above.

Save

Question 9 (1 point)

Inflation arising from a rise in the price of imported input goods like copper is an example of

Question 9 options:

demand-pull inflation.

cost-push inflation.

both of the above.

neither of the above.

Save

Question 10 (1 point)

The disinflation policies of the early 1980s were not costly due to

Question 10 options:

central bank independence.

sticky prices.

high government budget deficits.

all of the above.

an improvement in technology

lower oil prices

an increasing money supply

all of the above

Explanation / Answer

Q6. "an increasing money supply" could cause continually rising prices. Because with increase in money supply purchasing power will increase to which aggregate supply will short fall of increasing aggregate demand. Thus inflation could increase.

Q7. Assuming flexible prices, if the federal funds rate falls less than expected, then the shift to the "right" by AD will be "greater" than the shift to the "left"by AS in the short run.

Q8. Inflation arising from increased business confidence and investment is an example of "demand-pull inflation." Because demand will increase with increase in investment that will lead to increase in price.

Q9. Inflation arising from a rise in the price of imported input goods like copper is an example of "cost push inflation" as cost of commodity rises to which price rises.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.