Purchase Solution

Demand Pull Inflation

Not what you're looking for?

Ask Custom Question

Which of the following policies would decrease demand-pull inflation?
a. An increase in excess reserves.
b. The FED buying government securities.
c. Incomes policies.
d. A reduction in resource prices.

Purchase this Solution
Solution Summary

Based on the four choices, the solution identifies a policy that would decrease demand-pull inflation.

Solution Preview

Demand-pull inflation occurs when aggregate demand in an economy is greater than aggregate supply.

a. An increase in excess reserves ...

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

View More Free Quizzes
Related BrainMass Solutions

  • Demand Pull Inflation

    432016 Assess demand-pull. Some events occur and the economy experiences a demand-pull inflation. a. List the events that might cause demand-­pull inflation. b. Describe the initial effects of a demand-pull inflation. c.

  • Difference between cost-push and demand-pull inflation

    Definition of Demand-Pull Inflation Parkin and Bade give the following explanation for demand-pull inflation: "The inflation resulting from an increase in aggregate demand is called demand-pull inflation.

  • cost-push inflation

    45167 Cost-Push Inflation Explain how cost-push inflation might prompt policymakers to take actions that subsequently cause demand-pull inflation. Explain how this demand-pull inflation could lead to another round of cost-push inflation.

  • Economics-Macro

    There is an increase in aggregate demand because of future expected inflation which makes interest rate go up 5.Which one of the following is an example of cost push factor that will increase inflation? Which one is the demand pull factor?

  • How are people worse off when the price level rises as fast

    How, if possible, could demand-pull inflation occur before an economy was producing at full capacity?

  • Cost-Push Inflation

    Definition of Demand-Pull Inflation Parkin and Bade give the following explanation for demand-pull inflation: "The inflation resulting from an increase in aggregate demand is called demand-pull inflation.

  • AD/AS as a framework for fiscal and monetary policies

    I discuss the difference between cost push and demand pull inflation.

  • Causes of Inflation Influences

    Demand- pull inflation: According to this theory, inflation arises as "too much money chases too few goods". The inflation resulting from an increase in aggregate demand is called demand-pull inflation.

  • Unemployment and inflation

    C) Has the economy experienced demand-pull inflation, cost-push inflation, expected inflation or none of the these?

View More Related Solutions