At the Start of a Cost-Push Inflation

question 26

Multiple Choice

At the start of a cost-push inflation,

• A) the price level rises and real GDP decreases.
• 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 does not change.

---

Definitions:

Chronological Age

The exact age of an individual measured in years from the date of birth to the current date.

Alfred Binet

A French psychologist best known for creating the first intelligence test, the Binet-Simon scale.

Intelligence Test

A method of assessing an individual's mental aptitudes and comparing them with others using numerical scores.

Exponential

A mathematical function or growth pattern describing a quantity that increases at a rate proportional to its current value.