In a Cost-Push Inflation

question 304

Multiple Choice

In a cost-push inflation,

• A) increases in AD lead to increases in SAS.
• B) decreases in AD lead to increases in SAS.
• C) increases in SAS lead to decreases in AD.
• D) decreases in SAS lead to increases in AD.

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Definitions:

Substrate

A substance on which an enzyme acts; a reactant in an

Energy of Activation

The minimum amount of energy required to start a chemical reaction, often lowered by the presence of a catalyst.

Existing Bonds

Bonds that have already been issued and are currently traded in the bond market.

Required

Necessary or needed for a particular purpose or result.