Cost-Push Inflation May Be Caused by

question 20

Multiple Choice

Cost-push inflation may be caused by

• A)a decline in per-unit production costs.
• B)a decrease in wage rates.
• C)a negative supply shock.
• D)an increase in resource availability.

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Definitions:

APS

Average Propensity to Save, the fraction of income that is saved rather than spent on consumption goods.

APC

This stands for Average Propensity to Consume, which is the percentage of income that an individual or population spends rather than saving.

APS

Average Propensity to Save; it is a macroeconomic term that represents the proportion of income that is saved rather than spent on consumption. It is calculated by dividing total savings by total income.

APC

Average Propensity to Consume, which is the fraction of income that a person or population spends rather than saving.