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Sometimes an economy cannot grow because of external factors, such as

lack of skilled labor.

poor infrastructure.

low domestic demand.

low demand for exports.

How does demand-pull inflation differ from cost-push inflation?

Demand-pull inflation is driven by consumers, while cost-push inflation is driven by producers.

Demand-pull inflation is driven by producers, while cost-push inflation is driven by consumers.

Demand-pull inflation is driven by the private sector, while cost-push inflation is driven by the government.

Demand-pull inflation is driven by the government, while cost-push inflation is driven by the private sector.

Which is the best definition of inflation?

a gradual decrease in the price of goods and services

a gradual increase in the price of goods and services

an exponential decrease in the price of goods and services

an exponential increase in the price of goods and services

Which scenario is an example of demand-pull inflation?

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

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

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

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

Economists use gross national product (GNP) to measure

economic output within a nation, regardless of ownership.

the output of foreign-owned businesses within a nation.

the output of a nation’s citizens, regardless of where they are.

any business activity taking place outside a country.

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