Which of the following statements about a cost-push inflation is correct?
What will be an ideal response?
Cost-push inflation might start with a rise in the price of raw materials, but it requires increases in the quantity of money to persist.
You might also like to view...
Which of the following is the most likely explanation of Japan's very low market interest rates in the early 2000s?
A) expected deflation B) an increasing budget deficit C) an increasing trade surplus D) an increase in corporate profits
In a Mexican factory, each worker can produce 1/8 of a vase or 1/16 of a statue per hour. If there are 400 workers at the factory, the opportunity cost of one vase is
a. 2 statues b. 8 statues c. 1/2 of a statue d. 16 statues e. 1/16 of a statue
The four categories of final users of GDP are:
A. households, firms, governments, and the foreign sector. B. businesses, corporations, firms, and farms. C. businesses, firms, governments, and the foreign sector. D. households, the Federal Reserve, governments, and the foreign sector.
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.