Cost-Push Inflation Can Be Started by

question 238

Multiple Choice

Cost-push inflation can be started by

• A) a decrease in the money wage rate.
• B) an increase in the money prices of raw materials.
• C) an increase in the quantity of money.
• D) a decrease in government expenditure on goods and services.

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Definitions:

Budget Surpluses

Occurs when a government's revenues exceed its expenditures during a fiscal period, leading to extra funds.

Budget Deficits

A financial situation where expenditures exceed revenue.

Federal Budget

An annual financial statement presenting the government's proposed revenues and spending for a fiscal year.

Crowds Out

Refers to the effect where increased government spending and borrowing reduce private investment in the markets.