Which of the Following Could Lead to a Period of Cost-

question 78

Multiple Choice

Which of the following could lead to a period of cost- push inflation?

• A) an increase in aggregate supply in the economy
• B) a high growth rate of real wages
• C) an increase in aggregate demand in the economy
• D) automatic fiscal stabilisers

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Definitions:

Common Stock

Equity ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to investors.

Economic Resource

A resource with the ability to produce economic benefits for its holder, typically assets owned by an individual or entity.

Depreciated

Refers to the reduced value of an asset after accounting for depreciation expenses over time due to use, wear and tear, or obsolescence.