-In the above figure, the movement from point A to B to C to D to E represents
A) demand- pull inflation resulting from persistent increases in the quantity of money.
B) demand- pull inflation resulting solely from wage responses to excess labor demand.
C) cost- push inflation resulting solely from wage responses to excess labor demand.
D) cost- push inflation resulting from persistent increases in the quantity of money.

Question

-In the above figure, the movement from point A to B to C to D to E represents
A) demand- pull inflation resulting from persistent increases in the quantity of money. 
B) demand- pull inflation resulting solely from wage responses to excess labor demand. 
C) cost- push inflation resulting solely from wage responses to excess labor demand. 
D) cost- push inflation resulting from persistent increases in the quantity of money.

Quizplus · Accepted Answer

The movement from point A to B to C to D to E represents demand-pull inflation resulting from persistent increases in the quantity of money, as it describes a scenario where increased money supply leads to higher demand, pushing prices up.

-In the Above Figure, the Movement from Point a to B