Asked by taylor christy on May 30, 2024
Verified
One form of "cost-push inflation," economists refer to are
A) attempts by labor to raise wages that result in increases in prices.
B) rising prices due to excessive levels of government spending financed by open-market operations through the Fed.
C) rising prices due to excessive levels of aggregate demand.
D) the rise in total sales revenue attributable to price-tag changes rather than to real volume changes.
Cost-Push Inflation
Rising costs of doing business push up prices.
Open-Market Operations
Activities undertaken by central banks to buy or sell government securities in the open market to influence the money supply and interest rates.
Aggregate Demand
The all-embracing pursuit of goods and services in an economy, calculated at a fixed overall price level and within a chosen time frame.
- Understand the concept and causes of inflation and deflation.
Verified Answer
PV
Ph?m V?n Ph?ngMay 30, 2024
Final Answer :
A
Explanation :
Cost-push inflation occurs when production costs, such as wages, increase and businesses pass on these higher costs to consumers in the form of higher prices. If labor attempts to raise wages, it can lead to increases in prices and result in cost-push inflation.
Learning Objectives
- Understand the concept and causes of inflation and deflation.