Inflation Initiated by Increases in Wages or Other Resource Prices

question 51

Multiple Choice

Inflation initiated by increases in wages or other resource prices is labelled:

• A)demand-pull inflation.
• B)demand-push inflation.
• C)cost-push inflation.
• D)cost-pull inflation.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent or salaries, providing predictability for budgeting.

Responsibility Accounting

A system of accounting that segments financial information by areas of responsibility, allowing managers to be held accountable for their areas' financial performance.

Not-for-Profit Entities

Organizations that operate for purposes other than making a profit, often focusing on social, educational, or charitable endeavors.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenues.