Unlike Demand-Pull Inflation, Cost-Push Inflation

question 177

Multiple Choice

Unlike demand-pull inflation, cost-push inflation

• A) causes the supply of goods and services to decline.
• B) drives up the price level.
• C) increases nominal income.
• D) increases real income.

---

Definitions:

Gross Profit Rate

The ratio of gross profit to net sales, used to assess a company's financial health by indicating the efficiency of its production process.

Gross Profit

The financial difference between sales and the cost of goods sold, indicating the efficiency of a company in managing its production and inventory.

Estimated Cost

An approximation of the monetary value required to complete a task, make a product, or provide a service.