Cost-Push Inflation Starts with

question 252

Multiple Choice

Cost-push inflation starts with

• A) an increase in aggregate demand.
• B) a decrease in aggregate demand.
• C) an increase in short-run aggregate supply.
• D) a decrease in short-run aggregate supply.

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Definitions:

Spinal Reflex System

A part of the nervous system responsible for reflex actions, which are automatic and involuntary responses to stimuli, processed through the spinal cord.

Parasympathetic Nervous System

A division of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles in the gastrointestinal tract.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity by accelerating the heart rate, constricting blood vessels, and raising blood pressure.

Calming Reaction

A response that leads to a decrease in physiological or emotional arousal, often as a result of soothing stimuli or reassurance.