Cost-push inflation
A)is caused by excessive total spending.
B)shifts the nation's production possibilities curve leftward.
C)moves the economy inward from its production possibilities curve.
D)is a mixed blessing because it has positive effects on real output and employment.

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when production costs increase, leading to a decrease in the supply of goods and services, which moves the economy inward from its production possibilities curve.

Cost-Push Inflation