Which of the following factors could cause the economy to experience supply-side inflation?
A) increased security about jobs and future income
B) government laws which say that the average work week must be reduced by one hour every year
C) Increase the number of immigrants allowed into the country.
D) Develop new technology to increase productivity.

Question

Quizplus · Accepted Answer

Government laws which require a reduction in the average work week would reduce the total supply of labor available, resulting in supply-side inflation where businesses would need to raise wages to maintain their workforce, leading to higher costs and ultimately higher prices.

Which of the Following Factors Could Cause the Economy to Experience