Which of the Following Statements About a Cost- Push Inflation

question 44

Multiple Choice

Which of the following statements about a cost- push inflation is correct?

• A) Cost- push inflation starts when an increase in aggregate demand "pushes" costs higher.
• B) The United States has never experienced a cost- push inflation.
• C) Cost- push inflation might start with a rise in the price of raw materials, but it requires increases in the quantity of money to persist.
• D) To persist, cost- push inflation needs a continual series of cost hikes with no change in aggregate demand.

Learn the definitions and examples of market terminologies and measurements, like cutthroat competition and collusion.

Analyze the effects of firm behaviors on competitors and how it informs competitive strategies.

Understand the limitations of using concentration ratios for analyzing industry competitiveness.

Understand the concept of the kinked demand curve and its association with oligopolistic competition.

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Definitions:

Super-Ego

The part of the personality in Freudian psychoanalysis that represents internalized moral standards and ideals.

Operate

To function or perform effectively in a particular capacity or manner.

Structure

The arrangement or organization of component parts; can refer to physical, social, or abstract systems.

Psychodynamic Perspective

A psychological viewpoint that emphasizes the role of unconscious dynamics, motives, conflicts, and past experiences in shaping human behavior.