When There Is a Cost- Push Inflation

question 127

Multiple Choice

When there is a cost- push inflation,

• A) the short- run aggregate supply curve shifts rightward.
• B) workers demand higher money wages because of the inflation.
• C) the aggregate demand curve shifts leftward because of the cost hikes.
• D) None of the above answers is correct.

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Definitions:

Student Loans

Financial loans provided to students to help cover the cost of higher education, which typically must be repaid after graduation.

Unsecured Creditors

Creditors who have no specific claim over the assets of a debtor in case of default, placing them lower in priority for repayment.

Bankrupt

A person who has made an assignment in bankruptcy or been forced into bankruptcy through a court order obtained by a creditor, and who has not been discharged from bankruptcy.

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The release or termination of an obligation, such as debt or duty, under certain conditions.