Cost-Push Inflation Occurs When

question 193

Multiple Choice

Cost-push inflation occurs when

• A) total spending expands so much that equilibrium output exceeds full-employment output.
• B) a supply shock shifts the short-run aggregate supply curve to the right.
• C) rising resource costs reduce short-run aggregate supply.
• D) subsidies to businesses rise.

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Definitions:

Hyperthyroidism

A condition caused by excessive secretion of the thyroid glands.

Irritability

A state of increased sensitivity or annoyance, typically as a reaction to external stimuli or personal stress.

Low Blood Pressure

A condition where blood pressure is lower than normal, potentially causing symptoms like dizziness or fainting.

Hypothyroidism

A condition caused by a marked deficiency of thyroid secretion.