When there prices rise because of an increase in aggregate spending not fully matched by an increase in aggregate output, then, an economy is experiencing a Demand-pull inflation.
The Demand-pull inflation is the type of inflation experienced as a result of an imbalance in aggregate supply and demand, thus, the prices go up because of aggregate demand which outweighs the aggregate supply.
Therefore, the Option C is correct because when there prices rise because of an increase in aggregate spending not fully matched by an increase in aggregate output, then, an economy is experiencing a Demand-pull inflation.
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Answer:
Stella should consume less of milk and more of cookies to maximize total utility.
Explanation:
The price of cookies is $9, and the price of milk is $3.
Stella consumes 10 cookies and 5 cartons of milk.
The marginal utility of 10th cookie is 50 utils and the marginal utility of 5th carton of milk is 25 utils.
Her total utility will be maximized if the ratio of marginal utility and price will be equal for both cookies and milk.
Ratio for cookies
= 
= 
= 5.55
Ratio for milk
= 
= 
= 8.33
Since the ratio is higher for milk, it means that Stella should consume less of milk and more of cookies to maximize total utility.
Answer: Roughly $110.40
Explanation:
100 x (1.02)^5
The 1.02 is just 100 percent of the number plus the 2 percent interest you make.
Answer: ?
Explanation: Did anyone get the answer