A Stagflation Can Turn into a Cost- Push Inflation Process

question 247

Multiple Choice

A stagflation can turn into a cost- push inflation process when .

• A) the quantity of money persistently increases
• B) the money wage rate decreases
• C) taxes consistently increase
• D) the quantity of money persistently decreases

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Definitions:

Nontariff Barrier

Refers to any restriction, other than tariffs, that is used by countries to control the amount of trade across their borders, including quotas, embargoes, or regulations.

Trade Embargo

A government-imposed restriction on trade with a specific country or the exchange of specific goods.

Tariff

A tax imposed on imported goods to regulate trade by increasing the price of foreign products.

Quantity Demanded

The actual amount of a good or service consumers are willing to buy at some specific price.