Question

Which of the following would likely cause demand-pull inflation?(1 point) Responses a tornado destroys factories and lowers the supply levels throughout the economy a tornado destroys factories and lowers the supply levels throughout the economy a world wide recession causes a decline in consumer spending a world wide recession causes a decline in consumer spending The purchasing power of consumers increases due to a stimulus check from the US government The purchasing power of consumers increases due to a stimulus check from the US government An increase in the price of oil has reduced supply of all goods a services that use oil as an input

Answer 1

The purchasing power of consumers increases due to a stimulus check from the US government.