Cost-Push Inflation Might Start with

question 308

Multiple Choice

Cost-push inflation might start with

• A) a fall in the prices of raw materials.
• B) an increase in the quantity of money.
• C) an increase in government expenditures.
• D) a rise in money wage rates.

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Definitions:

Inflationary Recessions

Periods characterized by rising prices (inflation) occurring simultaneously with a decline in economic activity and employment (recession).

Monetary

Pertaining to currency or money, including policies, management, and the overall financial system that regulates money supply and interest rates in an economy.

Fiscal Policies

Government policies related to taxation and spending with the aim of influencing economic conditions.

Fiscal Policy Stimulus

Government measures, typically involving increased public spending and tax cuts, aimed at boosting economic activity.