Cost- Push Inflation Starts with

question 72

Multiple Choice

Cost- push inflation starts with

• A)a decrease in short- run aggregate supply.
• B)a decrease in aggregate demand.
• C)an increase in short- run aggregate supply.
• D)an increase in aggregate demand.

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Definitions:

Inelastic

Characterized by a low responsiveness of quantity demanded or supplied when there is a price change, signifying that changes in price have minimal impact on consumers' purchasing behavior.

Price Elastic

Describes a situation where the demand or supply of a good or service is highly sensitive to changes in price.

Measures

Measures refer to quantitative tools or methods used for assessing, comparing, or tracking performance or progress.

Elasticity

A measure of how much the quantity demanded or supplied of a good or service changes in response to changes in price, income, or other factors.