Question :
51) For a demand-pull inflation to persist requires persistent increases : 1240529
51) For a demand-pull inflation to persist requires persistent increases in
A) tax rates.
B) the real wage rate.
C) real GDP.
D) the quantity of money.
E) government expenditures.
52) During a demand-pull inflation, if the Fed tries to maintain a level of real GDP above potential GDP, the AD curve will ________ and the AS curve will ________.
A) shift rightward once; shift rightward continuously
B) shift rightward continuously; shift rightward continuously
C) shift rightward continuously; not shift
D) not shift; shift rightward continuously
E) shift rightward continuously; shift leftward continuously
53) In a demand-pull inflation, money wage rates rise because
A) a decrease in aggregate demand creates a labor shortage.
B) an increase in aggregate demand creates a labor surplus.
C) an increase in aggregate demand creates a labor shortage.
D) a decrease in aggregate demand creates a labor surplus.
E) an increase in aggregate supply creates a labor shortage.
54) To prevent demand-pull inflation,
A) firms must refuse to increase the money wage rate.
B) firms must refuse to increase the real wage rate.
C) the Fed must not let the quantity of money persistently rise.
D) the natural unemployment rate must increase.
E) real GDP must increase.
55) In a demand-pull inflation, if the Fed stops expanding the quantity of money,
A) a cost-push inflation will occur.
B) government expenditure will cause the demand-pull inflation to continue.
C) a deflation will occur.
D) the demand-pull inflation ends.
E) None of the above answers is correct.
56) The main sources of cost-push inflation are increases in
A) the money wage rate and the price of raw materials.
B) the real wage rate and the price of raw materials.
C) the money wage rate and aggregate demand.
D) the quantity of money and the real wage rate.
E) government expenditure and the quantity of money.
57) Cost-push inflation can be started by
A) a decrease in the money wage rate.
B) an increase in the money prices of raw materials.
C) an increase in the quantity of money.
D) an increase in government expenditure on goods and services.
E) a decrease in government expenditure on goods and services.
58) Cost-push inflation can start with
A) a decrease in investment.
B) an increase in oil prices.
C) an increase in government expenditure.
D) a decrease in government expenditure.
E) a decrease in the quantity of money.
59) Cost-push inflation might initially result from
A) an increase in the quantity of money.
B) a decrease in the quantity of money.
C) the use of new technology.
D) an increase in government expenditure.
E) an increase in the cost of resources.
60) Cost-push inflation starts with
A) an increase in aggregate demand.
B) a decrease in aggregate demand.
C) an increase in aggregate supply.
D) a decrease in aggregate supply.
E) an increase in potential GDP.
