Cost-Push Inflation Is

question 29

Multiple Choice

Cost-push inflation is

• A) inflation caused by increases in aggregate demand that generate an even larger increase in aggregate supply.
• B) inflation caused by increases in aggregate demand that are not matched by increases in aggregate supply.
• C) inflation caused by decreases in aggregate supply that generate an even larger decrease in aggregate demand.
• D) inflation caused by decreases in aggregate supply that are not matched by decreases in aggregate demand.

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Definitions:

Consumer Spending

The total amount spent by consumers on goods and services within a particular period, driving a significant portion of economic activity.

Transportation

The movement of people or goods from one location to another using various modes such as road, rail, air, or sea.

Giovanni Arnolfini

A wealthy merchant from Renaissance Bruges, frequently associated with the famous painting by Jan van Eyck believed to depict him and his wife.

Fidelity

The degree of accuracy by which a copy reproduces its source or the loyalty to faithfulness to obligations, duties, or commitments.