Cost-push inflation occurs:
A. at or close to full employment.
B. because of excess total spending.
C. when "too much money is chasing too few goods."
D. when there are increases in production costs.
Answer: D
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Which of the following statements is FALSE?
A) The value of one more unit of a good is the good's marginal benefit. B) A good's marginal benefit is the maximum price people are willing to pay for another unit. C) The maximum price people are willing to pay for one more unit of a good is its value. D) None of the above because all the statements are true.
Based on the quantity equation, if Y = 3,000 . P = 3, and V = 4, then M =
a. $4,000. b. $2,250. c. $250. d. $36,000.
The quantity of labor supplied is dependent on the size of the working population and the wage rate.
Answer the following statement true (T) or false (F)
If an economy is closed and wishes to increase its investment spending:
A. its only source of funding is domestic saving. B. its sources of funding are domestic and foreign saving. C. the government will need to increase its spending to provide for this. D. the government will increase taxes to provide for this.