Cost-push inflation is due to:
A. "too much money chasing too few goods".
B. the economy operating at full employment.
C. increases in production costs.
D. excess total spending.
Answer: C
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Does a rise in the price level bring a movement along the aggregate supply curve or does it shift the aggregate supply curve?
What will be an ideal response?
By definition, currency depreciation occurs when the value of
A) all currencies fall relative to gold. B) one currency falls relative to another currency. C) one currency rises relative to another currency. D) gold falls relative to the value of currencies.
Can a change in the price level change aggregate demand?
A) Yes, as the price level rises, aggregate demand falls. B) Yes, but only under the condition that the real balance effect is operational. C) No, only a change in a factor other than the price level can change aggregate demand. D) No, a change in the price level can only change aggregate supply. E) none of the above
What might be the effect of a union on a given occupation?
a. limit supply of labor b. stabilize demand for labor c. drive down wages d. drive down quality