Which of the Following Would Be Expected to Cause a an Increase

question 57

Multiple Choice

Which of the following would be expected to cause a an increase in the inflation rate rather than a once-and-for-all increase in the price level?

• A)the imposition of a new sales tax
• B)the sudden doubling of a key raw materials price
• C)a new payroll tax that raises unit wage costs
• D)expectations of higher future inflation
• E)an early frost that damages the agricultural harvest

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