If the government attempts to maintain full employment under conditions of cost-push inflation, deflation is likely to occur.

Name: If the government attempts to maintain full employment under conditions of cost-push inflation, deflation is likely to occur.
Brand: Quizplus
Rating: 4.9 (38 reviews)

Question

Quizplus · Accepted Answer

If the government tries to maintain full employment during cost-push inflation, it may lead to further inflation rather than deflation, as increased demand can exacerbate inflationary pressures.

If the Government Attempts to Maintain Full Employment Under Conditions