Cost-Push Inflation Occurs When Aggregate Supply Shifts to the Right

question 231

True/False

Cost-push inflation occurs when aggregate supply shifts to the right, causing the price level to increase along with rising unemployment.

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Definitions:

Infarction

Infiltration of foreign particles; material in a vessel causing coagulation and interference with circulation.

Stasis

A period or state of inactivity or equilibrium.

Stasis

A condition in which there is no movement or developmental progress, often referring to blood flow, bodily fluids, or growth.

Infarction

The obstruction of the blood supply to an organ or region of tissue, causing local death of the tissue.