Stagflation Is Associated with

question 97

Multiple Choice

Stagflation is associated with

• A) cost-push inflation.
• B) demand-pull inflation.
• C) both types of inflation.
• D) neither cost-push inflation or demand-pull inflation because it is a different concept altogether.

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Definitions:

Distributor

A person or company that is responsible for supplying goods to retailers or directly to customers.

Manufacturer

A person or company that makes goods for sale, especially on a large scale.

Output Contracts

Agreements in which a seller agrees to sell all the output of a certain product to a particular buyer.

Requirements Contracts

Contracts where one party agrees to purchase all of its needs for a particular commodity from the other party for a certain period.