Cost-Push Inflation

question 67

Multiple Choice

Cost-push inflation

• A)originates in the desire of policymakers to expand employment.
• B)will result in increases in output, unless policymakers adjust aggregate demand in response.
• C)cannot persist in the long run unless ratified by policymakers.
• D)was outlawed by the Humphrey-Hawkins Act of 1978.

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Definitions:

Price Change

A variation in the cost of a good or service over time in a market.

Nominal Income

Income figures that have not been adjusted for inflation, representing the amount of money earned in current dollars.

Quantity Demanded

The combined measure of a good or service that purchasers are eager and able to acquire at a predetermined price.

Buyer's Preferences

The individual tastes or desires that influence a consumer's purchasing decisions and the allocation of their budget across various goods and services.