'Cost-Push Inflation' Can Be Caused By

question 99

Multiple Choice

'Cost-push inflation' can be caused by:

• A)insufficient demand leading to falling profits for producers; therefore, producers have to raise their prices to continue to be profitable.
• B)increases in aggregate supply.
• C)real wage increases that are higher than increases in productivity growth.
• D)very high levels of aggregate demand in the short-run.

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Definitions:

Design For Disassembly

A design process focused on making products easier to take apart at the end of their life cycle, facilitating recycling and reducing waste.

Small-batch Production

A manufacturing process characterized by the production of small quantities of goods, tailored to specific orders or niche markets.

Long-linked Technology

A production process characterized by linear and sequential operations, often found in manufacturing contexts.

Automobile Industry

A global sector that involves the manufacturing, design, marketing, and selling of motor vehicles.