Which of the Following Can Cause Cost-Push Inflation If the Economy

question 60

Multiple Choice

Which of the following can cause cost-push inflation if the economy is currently in equilibrium at full-employment GDP?

• A)A flood which destroyed much of the country's crops.
• B)An increase in the size of the labour force.
• C)A decrease in personal income tax rates, which increases after-tax income.
• D)An increase in the capital stock in the country.