Which of the Following Statements About a Cost-Push Inflation Is

question 295

Multiple Choice

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

• A) To persist, cost-push inflation needs a continual series of cost hikes with no change in aggregate demand.
• B) 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.
• C) Cost-push inflation starts when an increase in aggregate demand ʺpushesʺ costs higher.
• D) The United States has never experienced a cost-push inflation.

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