_____ Inflation Occurs When a Supply Shock Reduces Aggregate Supply

question 19

Multiple Choice

_____ inflation occurs when a supply shock reduces aggregate supply.

• A) Cost-push
• B) Demand-pull
• C) Sticky
• D) Demand-push

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Definitions:

Production

The process of creating goods and services through the combination of labor, capital, land, and technology.

Scarcity

Scarcity refers to the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, necessitating prioritization and choice.

Sufficient Resources

The availability of adequate resources (including time, money, and manpower) to achieve a particular goal or complete a project.

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world with limited resources.