One Policy Dilemma Posed by Cost-Push Inflation Is That

question 3

Multiple Choice

One policy dilemma posed by cost-push inflation is that

• A)an increase in aggregate demand will increase inflation and the unemployment rate simultaneously.
• B)tax rates can be reduced without lowering tax revenues.
• C)the reduction of aggregate demand to restrain inflation will cause a further reduction in the real GDP.
• D)the adjustment of aggregate demand can neither increase real GDP nor reduce inflation.

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Slave Property

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