At the Start of a Cost- Push Inflation

question 394

Multiple Choice

At the start of a cost- push inflation,

• A) the price level rises and real GDP does not change.
• B) the price level and real GDP both increase.
• C) only real GDP changes while the price level remains constant.
• D) the price level rises and real GDP decreases.

---

Definitions:

Chunking

A cognitive strategy for organizing information into more manageable units or chunks, enhancing memory and recall.

Meaningful Units

Discrete pieces of information or elements that can be understood and processed as a single unit within a larger context, enhancing comprehension or learning.

Information

Data that is processed, organized, structured or presented in a given context to make it meaningful or useful.

Peg-Word System

A mnemonic technique for memorizing lists by associating items with a pre-memorized list of words or numbers.