During Cost-Push Inflation, Aggregate Output _____ and the Aggregate Price

question 78

Multiple Choice

During cost-push inflation, aggregate output _____ and the aggregate price level _____.

• A) rises; rises
• B) rises; falls
• C) falls; falls
• D) falls; rises

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Definitions:

Carnations

A species of flowering plant in the Dianthus genus, often used in bouquets and floral arrangements.

Imported

Brought into a country from abroad for sale.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive.

Tariff

A tax imposed by a government on imported or exported goods.