When There Is a Cost-Push Inflation

question 9

Multiple Choice

When there is a cost-push inflation,

• A) workers demand higher money wages because of the inflation.
• B) the short-run aggregate supply curve shifts rightward.
• C) the aggregate demand curve shifts leftward because of the cost hikes.
• D) None of the above answers is correct.

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Definitions:

Gender Typing

The acquisition of a traditional masculine or feminine role.

Selection Effect

A bias in how subjects are chosen for a study or observation, affecting the validity of the conclusions.

Adaptive Capacities

The ability of individuals or systems to adjust effectively to new or changing environments.

Cultural Diversity

The existence of a variety of cultural or ethnic groups within a society.