Cost-Push Inflation Starts with

question 128

Multiple Choice

Cost-push inflation starts with

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

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Definitions:

Consumer's Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount that they actually pay.

Mead

An alcoholic beverage created by fermenting honey with water, sometimes with various fruits, spices, grains, or hops added.

Demand Function

A mathematical representation that describes the relationship between the quantity demanded of a good and various factors that influence this quantity, such as price.

Consumer's Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.