Question

1) Solution: the inflation that results from any inflationary gap caused by a rightward shift of the AD curve.

Explanation: Demand-pull inflation occurs when prices increases because the aggregate demand in an economy is greater than the aggregate supply.

2) Solution: increase in the price level that occurs when the excess demand for inputs pushes up input costs

Explanation: Cost-push inflation occurs when prices pushed up due to increases in wages, raw materials, indirect taxes and other input factors (labor, capital, land or entrepreneurship).

3) Solution: hyperinflation

Explanation: Hyperinflation means a very high inflation

4) Solution: they do not represent the purchase of a good or a service

Explanation: Transfer payments are excluded in GDP because it only allocates the money to achieve social ends.

25) Solution: rose by 5 percent

Explanation: Real National Income = Nominal national income - Inflation = 10% - 5 % = 5%

26) When a government changes its fiscal policy it is

Solution: changing the government spending and/or tax to change national income

Explanation: In the fiscal policy the government adjusts its tax rates and spending levels to influence a country's economy.

27) Solution: Expansionary

Explanation: Expansionary fiscal policy is increased tax benefits or government spending

I have more than 4 parts

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