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:

Accrual Accounting

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur.

Current Operating Liabilities

Short-term liabilities that are incurred as part of the normal operations of a business, due within a fiscal year.

Decreases

A reduction in quantity, size, or overall value of an asset, revenue, or other financial metric.

Decreases in Current Assets

The reduction in the value or amount of the assets that a company expects to convert into cash within one year.