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 level rises due to increases in the cost of wages and raw materials. This typically reduces real output as higher production costs can lead to decreased supply and economic slowdown.

Cost-Push Inﬂation