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.
Demand-pull inflation occurs when aggregate demand in an economy is greater than aggregate supply.
a. An increase in excess reserves ...
Based on the four choices, the solution identifies a policy that would decrease demand-pull inflation.
COST-PUSH VERSUS DEMAND-PULL INFLATION
What is the difference between cost-push and demand-pull inflation? Which was the primary cause of inflation in the early 1970's? What type of inflation has the Federal Reserve been trying to prevent in 1998 and 1999?View Full Posting Details