Asked by Emily Ratliff on May 22, 2024
Verified
Cost-push inflation:
A) occurs when the aggregate demand curve shifts rightward.
B) occurs when the aggregate supply curve shifts rightward.
C) results in a decrease in the unemployment rate.
D) results in a movement along the aggregate demand curve.
E) is caused by the same factors that lead to demand-pull inflation.
Cost-Push Inflation
Inflation resulting from a rise in the cost of inputs such as labor, raw materials, and so forth, which subsequently reduces the availability of these goods.
Aggregate Demand Curve
A graphical representation showing the total demand for all goods and services in an economy at different price levels.
Aggregate Supply Curve
A graphical representation that shows the total quantity of goods and services producers are willing to supply at different price levels in an economy.
- Pinpoint the variables responsible for inflation, namely cost-push and demand-pull factors.
Verified Answer
Learning Objectives
- Pinpoint the variables responsible for inflation, namely cost-push and demand-pull factors.
Related questions
If the Aggregate Supply Curve Shifts Leftward,then _____ ...
The Inflation Experienced in the United States During the Late ...
The Inflation Experienced in the United States During the 1970s ...
An Example of Deflation Since the Base Year Would Be ...
The View That Union Wage Demands May Be a Source ...