Cost-Push Inflation Can Be Caused by

question 14

Multiple Choice

Cost-push inflation can be caused by

• A)an increase in government spending.
• B)an increase in a source of raw material.
• C)a change in aggregate demand.
• D)the supply side of the market.

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Definitions:

Double-Declining-Balance

An accelerated method of depreciation that doubles the standard depreciation rate, resulting in higher depreciation expenses in the earlier years of an asset's life.

Residual Value

The salvage value of an asset after its period of use has ended, reflecting its remaining worth.

Depreciation Method

A methodical strategy for distributing the expense of a physical asset across its lifespan.

Straight-Line

A method of allocating an asset's cost evenly over its useful life for purposes of depreciation.