Cost-Push Inflation Is Caused By

question 30

Multiple Choice

Cost-push inflation is caused by:

• A) an increase in aggregate demand.
• B) a decrease in aggregate demand.
• C) an increase in aggregate supply.
• D) a decrease in aggregate supply.

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Definitions:

Cost Method

An accounting approach where investments are recorded at their acquisition cost, without adjustment for increases or decreases in market value.

Goodwill

An intangible asset arising when a company acquires another for more than the fair value of its net identifiable assets.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to investors.

Non-controlling Interest

The share of ownership in a subsidiary that doesn't belong to the parent company.