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.

---

Definitions:

Urine Output

A measurement of the volume of urine excreted by the body in a given time period, indicative of kidney function and hydration status.

Arteriosclerosis

A general term describing the thickening and hardening of arterial walls that can restrict blood flow.

Renal Failure

A medical condition where the kidneys lose their ability to filter waste products from the blood, leading to accumulation of toxins.

Hypertension

A chronic medical condition in which the blood pressure in the arteries is persistently elevated.