The Initial Factors That Can Create a Cost-Push Inflation Do

question 211

Multiple Choice

The initial factors that can create a cost-push inflation do NOT include

• A) increases in money wage rates.
• B) increases in the money prices of raw materials.
• C) increases in the quantity of money.
• D) None of the above answers is correct because all of the above could be the initial cause of a cost-push inflation.

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Definitions:

Government

The organized system or group of people governing an organized community, often a state, managing its public policy and affairs.

Lags

Delays in the effect of economic policies or other changes in the economy, which can affect the timing and efficiency of economic outcomes.

Discretionary Fiscal Policy

Fiscal measures, such as government spending and taxation, actively applied by a government to influence the economy, especially to counteract recession or control inflation.

Inflation

The rate at which the widespread price level of goods and services rises, impairing the purchasing power.