Social Studies, 11.10.2019 04:30 182075

Which theory of inflation states that all sectors in the economy try to buy more than the economy can produce, which in turn creates shortages and lost business for merchants.
a.
demand-pull theory
c.
wage-price spiral
b.
cost-push theory
d.
economic growth theory

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I believe that the best answer among the choices provided by the question is d. economic growth theory
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Answer from: poppy1173

demand-pull theory

Explanation:

The demand-pull theory explains that in a situation where the purchase of products, that is, the demand for products in exorbitant quantities that exceed the capacity of these products to be produced, causes inflation. In other words, according to this theory, if all sectors of the economy try to buy more than the economy can produce, which in turn would create scarcity and loss of business for traders, it would cause an imbalance in the region's economy and in turn would cause inflation.

Answer from: Quest

a is the answer because it just is

Answer from: Quest

levels of production can be increased by technology while holding labor and capital constant, because increased technology makes the production process more efficient. subsequently, the lras curve is almost a vertical line, that can shift to the right, with an increase in technology.

the relationship between the lras curve and the ppc is that both can make the economy could grow. the ppc achieves that when it shifts outward because of more resources or technological advances while the lras curve shifts if more resources are developed or if there are technological advances.

the lras curve is a vertical line at an output level that represents the number of goods and services a nation can produce over a sustained period using all of its productive resources as efficiently as possible with all of the current technology available to it.

the production possibilities frontier (ppf) is a graphical device that is used for economic analysis of production decisions because the ppf measures the maximum possible combinations of two goods that an economy is capable of producing with its currently available resources and technology.

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