Cost-push inflation occurs because of a:
A. rightward shift in the aggregate demand curve.
B. leftward shift in the aggregate demand curve.
C. leftward shift in the aggregate supply curve.
D. rightward shift in the aggregate supply curve.
Answer: C
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A "easy" money, tight "fiscal" policy combination will be preferred by society which values
A) low growth rates, but more goods and services in the future. B) public goods today greater than private goods in the future. C) private goods today more than public goods in the future. D) public and private goods in the future more than public and private goods today.
The March 2000 "tech bubble" burst caused the aggregate demand curve to shift to the left by ________
A) causing an upward spike in the real interest rate B) reducing autonomous spending by households and businesses C) reducing government spending on high-tech equipment D) all of the above E) none of the above
Which of the following is most indicative of a recession?
a. a decline in unemployment b. a rise in inflation c. a decline in real GDP d. an increase in the interest rate
an individual demand schedule
What will be an ideal response?