Answer to Question #337835 in Microeconomics for Hlelo

Question

In response to the COVID-19 pandemic, countries

injected trillions of dollars into their economies to

provide relief to households and firms. This

response is an example of …. policy, which can

result in ... inflation, ceteris paribus.

O a. expansionary; demand-pull

O b. expansionary; cost-push

O c. contractionary; cost-push

O d. contractionary; demand-pull

Answer 1

a. expansionary; demand-pull