Explain Cost-Push Inflation and Give an Example of a Possible

question 39

Essay

Explain cost-push inflation and give an example of a possible cause.

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Definitions:

DVDs

Optical disc storage format used to store high capacity data like movies, software, and other digital content.

CDs

Short for Certificates of Deposit, which are savings certificates with a fixed maturity date and specified fixed interest rate that are issued by banks.

Budget Constraint

A budget constraint represents the limitations on the spending choices of consumers based on their income and the prices of goods and services.

DVDs

Digital Versatile Discs, a type of optical storage media used for storing data, including movies, software, and other digital information.