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Demand-Pull and Cost-Push Inflation
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Demand-Pull and Cost-Push Inflation
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11. Unemployment and Inflation / Demand-Pull and Cost-Push Inflation / Problem 3
Problem 3
What is the impact of demand-pull inflation on consumer purchasing power?
A
It decreases purchasing power as prices rise.
B
It has no impact on purchasing power.
C
It increases purchasing power as prices fall.
D
It stabilizes purchasing power as prices remain constant.
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