Cost-push inflation
A)reduces real output.
B)increases real output.
C)reduces the unemployment rate.
D)raises the natural rate of unemployment.

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when the overall price levels rise due to increases in the cost of wages and raw materials. This type of inflation can reduce real output because higher production costs can lead to decreased supply, which can slow down economic growth.

Cost-Push Inflation