What Are the Primary Effects of Cost-Push Inflation

question 39

Multiple Choice

What are the primary effects of cost-push inflation?

• A) It raises real output and redistributes an increased level of real income.
• B) It reduces real output and redistributes a decreased level of real income.
• C) It raises real output but redistributes a decreased level of real income.
• D) It reduces real output but redistributes an increased level of real income.

---

Definitions:

Black and Latino

Pertaining to individuals of African and Latin American descent respectively.

Intermarriages

Marriages between spouses of different racial, ethnic, religious, or cultural backgrounds, reflecting trends in societal integration and diversity.

Racial-gender Stereotypes

Preconceived and oversimplified beliefs about individuals based on their race and gender, often leading to discrimination and inequality.

Asian Americans

A diverse group of Americans of Asian descent, including various ethnicities and cultures.