Which of the following would most likely occur during the expansionary phase of the business cycle?
A) demand-pull inﬂation
B) cost-push inﬂation
C) structural inﬂation
D) frictional inﬂation

Question

Quizplus · Accepted Answer

During the expansionary phase, there is an increase in demand for goods and services, leading to an increase in prices or demand-pull inflation. Cost-push inflation occurs when there is an increase in production costs, which is not likely to happen during the expansionary phase. Structural inflation occurs when there are significant changes in an economy's structure, and frictional inflation is caused by changes in supply and demand factors, which are not likely to occur during the expansionary phase.

Which of the Following Would Most Likely Occur During the Expansionary