Cost-push inflation
A)originates in the desire of policymakers to expand employment.
B)will result in increases in output, unless policymakers adjust aggregate demand in response.
C)cannot persist in the long run unless ratified by policymakers.
D)was outlawed by the Humphrey-Hawkins Act of 1978.

Question

Quizplus · Accepted Answer

Cost-push inflation is caused by an increase in the cost of production, such as an increase in the price of raw materials or wages. This increase in costs leads to higher prices for the final goods and services, causing inflation. It is not caused by policymakers' desire to expand employment or adjustments in aggregate demand. Cost-push inflation can persist in the long run unless there are structural changes in the economy, but it cannot be ratified or outlawed by policymakers.

Cost-Push Inflation