Demand-pull inflation in the short run increases the price level and:
A)real wages.
B)real output.
C)unemployment.
D)nominal wages.

Name: Demand-pull inflation in the short run increases the price level and: A)real wages. B)real output. C)unemployment. D)nominal wages.
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Question

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In the short run, demand-pull inflation increases the price level and real output as higher demand leads to more production to meet the increased demand.

Demand-Pull Inflation in the Short Run Increases the Price Level