At the start of a cost- push inflation,
A)productivity rises.
B)the short- run aggregate supply curve shifts rightward.
C)real GDP increases faster than the quantity of money.
D)prices and unemployment are rising.

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when rising production costs, such as wages and raw materials, lead to decreased supply, causing prices to rise while unemployment also increases due to reduced output.

At the Start of a Cost- Push Inflation