Cost-Push Inflation Can Occur as the Result of Higher Wage

question 150

True/False

Cost-push inflation can occur as the result of higher wage rates.
Anything that causes costs to rise in production will lead to cost-push inflation.

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Definitions:

Institutional Theory

A theory that emphasizes the role of institutions in shaping the behavior and decisions of individuals and organizations by establishing norms, values, and rules.

Required by Law

Obligations that individuals or entities must comply with, as mandated by legislation or legal statutes.

Temporary

Relating to a limited period of time; not permanent.

Voluntary

Performed, carried out, or done by one's own choice or consent; acting or done willingly and without constraint or expectation of reward.