Cost-push inflation arises from:

a. An increase in aggregate supply
b. A decrease in aggregate supply
c. A decrease in aggregate demand
d. An increase in aggregate demand


b. A decrease in aggregate supply

Economics

You might also like to view...

A firm that conducts business all over the world is called a(n)

A. multinational corporation. B. international conglomerate. C. competitive corporation. D. government-owned business.

Economics

New Keynesians hypothesize that

A) fluctuations in output are largely caused by supply shocks. B) the relationship between inflation and unemployment is exploitable in the long run. C) the relationship between inflation and unemployment is exploitable in the short run. D) there is no relationship between inflation and unemployment.

Economics

Airline regulation by the CAB kept prices the same on any route and also set prices high. This led airlines to offer high quality service, which raised costs to the level of prices

Indicate whether the statement is true or false

Economics

Derivatives are securities that derive their values from the values of underlying investments.

Answer the following statement true (T) or false (F)

Economics