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Principal Renfro likes to place students in groups at the beginning of the school year according to their IQ scores and keep them together for the rest of the year. Which of the following assumptions would this principal most likely cite to support this practice?
Cost-push Inflation
Inflation caused by an increase in prices of inputs like labour, raw material, etc. It’s when the supply side of the economy’s production function becomes more expensive.
Demand-pull Inflation
Inflation that occurs when the demand for goods and services exceeds their supply, leading to an increase in prices.
Demand-pull Inflation
A situation where inflation is caused by an increase in demand for goods and services, exceeding the available supply.
Cost-push Inflation
Inflation caused by an increase in production costs, such as raw materials and wages, which leads to a decrease in the supply of goods and services at the same price levels.
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