Which Is True of Cost-Push Inflation

question 201

Multiple Choice

Which is true of cost-push inflation?

• A)It occurs when the aggregate demand curve shifts rightward.
• B)It occurs when the aggregate supply curve shifts rightward.
• C)It results in a decrease in the unemployment rate.
• D)It results in a movement along the aggregate demand curve.
• E)It is caused by the same factors that lead to demand-pull inflation.

---

Definitions:

Modernization Theory

A social science theory that posits the transition from traditional to modern societies involves systematic development in areas like industry, technology, and governance.

Dependency Theory

A theoretical perspective that suggests economic development of countries is linked to their dependence on more developed nations, often describing how resources flow from a periphery of poor and underdeveloped states to a core of wealthy states.

Compare and Contrast

A method of analysis that identifies similarities and differences between two or more subjects, objects, or ideas.

Social Changes

Transformations in the structure and functioning of a society, often brought about by cultural, economic, or technological developments.