a. Demand-pull inflation occurs when O there is a negative price gap. O there is a negative GDP gap. 04:53:21 O there are increases in per-unit costs of production. prices rise because of an increase in aggregate spending not fully matched by an increase in aggregate output. b. A negative GDP gap is associated with O cost-push inflation. O demand-pull inflation. O unanticipated inflation. O core inflation. c. A positive GDP gap is associated with O deflation. O core inflation. O demand-pull inflation. O cost-push inflation. d. What items are excluded to calculate core inflation? O Food and gas. O Durable goods O Commodities. O Only non-renewable energy. e. Why do policymakers exclude these items and calculate core inflation? O Policymakers strip out volatile prices to find the underlying change in the CPI. O Policymakers think consumers value the items included in core inflation more than those excluded from it. Policymakers value the items included in core inflation more than those excluded from it. O Prices of the excluded items cannot be collected to be included in the calculation.2 a. A nancial crisis can lead to a recession because it can cause O investment and income to fall, lowering saying and increasing the money supply. 0 investment and saving to fall. increasing spending and ultimately employment 6) wealth and income to fall, reducing spending and ultimately reducing employment. O wealth and saving to fall, lowering investment and increasing the money supply. b. A major new invention can lead to an expansion if there are 0 decreases in wealth but increases in consumption and unemployment. @ increases in investment, consumption, output, and employment. O increases in saving. the money supply, and employment. 0 decreases in saving but increases in consumption and unemployment