Which of the Following Are Associated with Cost-Push Inflation

question 70

Multiple Choice

Which of the following are associated with cost-push inflation?

• A) Aggregate demand increases.
• B) Aggregate demand decreases.
• C) Long-run aggregate supply increases.
• D) Short-run aggregate supply decreases.

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Definitions:

Forecasting Error

The difference between the actual value and the predicted value in forecasting, indicating the accuracy of the prediction.

Capital Expenditure

Resources allocated by a corporation to purchase or improve tangible assets like land, factories, or machinery.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.

Contribution Margin

The amount by which sales revenue exceeds variable costs of production, indicating how much contributes to fixed costs and profits.