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