Cost-push inflation is caused by:
a. an increase in aggregate demand

b. a decrease in aggregate demand.
c. an increase in short-run aggregate supply.
d. a decrease in short-run aggregate supply.


d

Economics

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Arthur Burns and Wesley Mitchell first described business cycles as ________

A) fluctuations in consumer preferences B) fluctuations in the price of bicycles C) fluctuations in aggregate economic activity D) all of the above E) none of the above

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Why might voters tend to be relatively uninformed about political issues?

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Suppose the CPI does indeed overstate the inflation rate. When the CPI increases by 5 percent and household incomes increase by 5 percent, we should conclude that real incomes of households have:

A. increased. B. increased more slowly than has inflation. C. stayed constant. D. decreased.

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In perfect competition, which is NOT true?

A. Firms are price-takers. B. There are a large number of firms. C. Firms produce homogeneous goods. D. Every firm has a small but perceivable market power.

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