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.

---

Definitions:

Compulsive Overeating

An eating disorder characterized by periods of uncontrollable, excessive eating beyond the point of feeling comfortably full.

Binge Eating

A pattern of disordered eating which consists of episodes of uncontrollably eating large quantities of food in a short period of time.

Substance Abuse

The excessive use of substances, including alcohol and drugs, leading to addiction and negative health effects.

Recreational Drugs

Substances taken for pleasure or leisure purposes, rather than for medical reasons, which can include alcohol, tobacco, and illegal drugs.