Which of the Following Would Lead to Wage-Push Inflation

question 5

Multiple Choice

Which of the following would lead to wage-push inflation?

• A)The economy experiences a trend of wage increases below labour productivity increases.
• B)The economy experiences an inflationary gap.
• C)Producers are able to pass a wage increase on to the consumer in the form of higher prices.
• D)Aggregate demand increases significantly.

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