İKTİSADA GİRİŞ II - Deneme Sınavı - 13
II. Demand-pull inflation is the inflation that occurs as a result of increase in input costs.
III. If the economy operates on the steeper part of AS curve when aggregate demand increases price increase precludes output increase.
What can be said to be true about demand-pull inflation?
II. The increase in government expenditures will cause the aggregate demand curve
to shift to the right and the prices will decrease.
III. If the central bank follows an expansionary monetary policy by accommodating to expansionary fiscal policy, it will be the only reason that creates inflation.
What can be said to be true about money supply and inflation?
II. The factor that causes the decrease of the production amount when the general level of prices increases in the economy is the interest rate.
III. The aggregate demand curve shifts to the left to indicate that aggregate demand increases when government expenditure increases, money supply increases, and taxes decrease.
What can be said to be true about aggregate demand?