Which of the Following Will Lead to Sustained Inflation

question 74

Multiple Choice

Which of the following will lead to sustained inflation?

• A)the imposition of a new sales tax
• B)the sudden doubling of a key raw materials price
• C)a new payroll tax that raises firms' unit labour costs
• D)persistent expectations of continued inflation
• E)an early frost that damages the agricultural harvest

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Definitions:

Personality Traits

Enduring characteristics or qualities that define an individual's behavior across different situations.

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Pertains to the principles and beliefs that influence an individual's behavior and choices, shaping their perspective on life.

Western European Nations

Countries located in the western part of Europe, often characterized by shared historical and cultural traits.

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