When a Cost-Push Inflation Starts

question 69

Multiple Choice

When a cost-push inflation starts

• A) the price level falls and the money wages rises.
• B) real GDP rises faster than the quantity of money.
• C) the short-run aggregate supply curve shifts rightward.
• D) the price level rises and real GDP decreases.

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Definitions:

Excitement Factors

Elements or features of a product or service designed to stimulate interest, enthusiasm, or excitement among consumers.

Customer Satisfaction

An assessment of the degree to which a company's products or services exceed or fulfill the anticipations of its customers.

Research And Development (R&D)

The investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.

Diminishing Returns

A principle in economics that states after a certain point, the addition of a factor of production results in smaller increases in output.