Answers 26-27 Ignite Technical Math-Financial Math - MA2007 Inflation and StagflationQuestion 5

5

QuizMultiple Choice

Inflation and Stagflation

Question 5 • 26-27 Ignite Technical Math-Financial Math - MA2007

Which scenario is an example of demand-pull inflation?

Answer

A

Consumers have more money to buy cars, and the prices of cars and car accessories rise as a result.

B

An increase in workers’ wages raises the production cost of cars, and car prices rise as a result.

C

The demand for cars falls as consumers have less disposable income, and car prices fall as a result.

D

A government bailout helps car manufacturers lower their costs, and car prices fall as a result.

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