Cost-Push Inflation Can Start with

question 322

Multiple Choice

Cost-push inflation can start with

• A) lower taxes.
• B) an increase in government expenditure.
• C) higher money wage rates.
• D) an increase in transfer payments.

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Definitions:

Utility

In economics, a measure of the satisfaction or happiness that individuals get from consuming goods and services.

Good X

Placeholder term often used in economic models to represent a generic good or product.

Diminishing Marginal Utility

The principle that as a person consumes more of a good, the satisfaction gained from each additional unit decreases.

Apples

A type of fruit known for its sweet taste and crisp texture, coming in various colors such as red, green, and yellow.