Which of the Following Can Cause Cost-Push Inflation If the Economy

question 81

Multiple Choice

Which of the following can cause cost-push inflation if the economy is currently in equilibrium at full-employment GDP?

• A) A flood that destroys much of the country's crops.
• B) An increase in the size of the labour force.
• C) A decrease in personal income tax rates, which increases after-tax income.
• D) An increase in the capital stock in the country.

---

Definitions:

2 GHz

A frequency level of 2 gigahertz, often related to the clock speed of computer processors or communication signal frequencies.

Input Device

A hardware device used to enter data and instructions into a computer, for example, a keyboard or mouse.

Printer

A peripheral device connected to a computer or network that converts digital documents into physical copies on paper or other substrates.

Anti-virus Scanning

The process performed by software to detect, prevent, and remove malicious software and viruses from a computer system.