What Do Demand-Pull Inflation and Cost-Push Inflation Cause

question 3

Multiple Choice

What do demand-pull inflation and cost-push inflation cause?

• A)Demand-pull inflation causes a recessionary gap, and cost-push inflation causes a recessionary gap.
• B)Demand-pull inflation and cost-push inflation both cause an inflationary gap.
• C)Demand-pull inflation causes an inflationary gap, and cost-push inflation causes a recessionary gap.
• D)Demand-pull inflation causes a recessionary gap, and cost-push inflation causes an inflationary gap.

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