Cost-push inflation is characterized by a(n):
A. Increase in aggregate supply and a decrease in aggregate demand
B. Increase in aggregate demand and no change in aggregate supply
C. Decrease in aggregate supply and no change in aggregate demand
D. Decrease in both aggregate supply and aggregate demand
C. Decrease in aggregate supply and no change in aggregate demand
You might also like to view...
The table below shows data for India's economy. Real GDP is measured in millions of rupees. Suppose that full employment occurs when real GDP is 27,000 million rupees
Price level Real GDP supplied in the short run Real GDP demanded a 114 23,501 35,898 b 120 25,355 32,341 c 125 27,670 27,670 d 131 30,366 18,569 e 138 33,164 15,898 The economy is experiencing ________ gap and firms will ________. A) an inflationary gap; increase production B) an inflationary gap; increase money wages paid to workers C) a recessionary gap; increase production D) a recessionary gap; decrease money wages paid to workers
Suppose a perfectly competitive ukulele factory can produce 35 ukuleles at an output at which marginal cost equals marginal revenue. The price per ukulele is $1300 and the average total cost is $1500
What is the profit or loss that this furniture factory is earning? A) $700.00 B) -$7,000.00 C) -$1,050.00 D) -$450.00
When economists study the behavior of sellers, they are studying:
A) supply. B) the role of government. C) demand. D) accounting.
Individual Choice
What will be an ideal response?