Cost-push inflation is characterized by a(n):
A. decrease in aggregate supply and no change in aggregate demand.
B. increase in aggregate demand and no change in aggregate supply.
C. increase in aggregate supply and a decrease in aggregate demand.
D. decrease in both aggregate supply and aggregate demand.
Answer: A
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By switching its sales agents to a sales neutral profit commission, the firm is trying to convince the agents
a. To not change their sales patterns, as it would not change their compensation b. Improve their compensation by pricing less aggressively c. Improve their compensation by pricing more aggressively (lowering prices) d. None of the above
When an industry supply curve increases enough to erase economic profits,
a. weaker firms exit the industry b. quantity demanded decreases, but only slightly c. all firms in the industry incur economic losses d. entry of new firms and expansion of existing firms stop e. marginal revenue increases
Which of the following is not a resource for a society?
a. capital goods, like factories and machine tools b. entrepreneurship c. legal institutions d. labor
Manager-determined prices are
A. not determined by the forces of demand and supply. B. exogenous variables in a demand equations. C. associated with price-taking firms. D. both a and b E. both b and c