Demand-pull inflation is induced by

a.inward shift in the aggregate supply curve

b.inward shift in the aggregate demand curve

c.outward shift in the aggregate demand curve

d.outward shift in the aggregate supply and demand curves

Consider Economy XYZ produces where 500 units of output and each unit of output sells for $40. Now suppose that this economy has a money supply of $8000. If it is using $8,000 of currency to purchase 500 units of output, then each dollar has to change hands how many times?

a.12.5

b.1.5

c.2.5

d.16