Which of the Following Is Something That Could Cause Cost-Push

question 102

Multiple Choice

Which of the following is something that could cause cost-push inflation?

• A) An epidemic increases the need for medical care, pushing up the price level.
• B) A reduction in consumer spending due to consumer pessimism reduces demand.
• C) A reduction in regulation causes a surge in business activity.
• D) An increase in the price of oil raises the transportation and energy expenses of producers.

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Definitions:

Moral Values

Principles or standards of behavior that dictate what is considered right or wrong, guiding ethical conduct.

Ingroup Member

An individual who belongs to and identifies with a specific social group, sharing common interests, values, or characteristics with other members.

Pluralistic Ignorance

A situation where a majority of group members privately reject a norm, but incorrectly assume that most others accept it, leading to a disconnect between beliefs and behaviors.

Social Responsibility Norm

A societal rule that people should help those who need assistance, without regard to future exchanges.