In a demand-pull inflation, money wage rates rise because
A. a decrease in aggregate demand creates a labor shortage.
B. an increase in aggregate demand creates a labor surplus.
C. an increase in aggregate demand creates a labor shortage.
D. a decrease in aggregate demand creates a labor surplus.
Answer:C
In a demand-pull inflation, money wage rates rise because
A. a decrease in aggregate demand creates a labor shortage. B. an increase in aggregate demand creates a labor surplus. C. an increase in aggregate demand creates a labor shortage. D. a decrease in aggregate demand creates a labor surplus.