The Underlying Cause of Inflation Is

question 55

Multiple Choice

The underlying cause of inflation is

• A)labor unions demanding higher wages.
• B)businesses charging higher prices.
• C)government raising taxes.
• D)increasing aggregate demand.

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Definitions:

Needs Theory

A conceptual framework that identifies and categorizes the fundamental motivations driving human behavior.

Drive-reduction Theory

A theory of motivation proposing that the presence of a need creates a drive to eliminate or satisfy that need, thereby restoring balance or homeostasis.

Homeostasis

The process by which biological systems tend to maintain stability while adjusting to conditions that are optimal for survival.

Primary Drives

Basic, innate urges that motivate behavior necessary for survival, such as hunger, thirst, sleep, and avoidance of pain.