In part,supply-side inflation
A) is at the heart of demand-side inflation.
B) is an example of too little money chasing too many goods.
C) is an outgrowth of a perfectly competitive market structure.
D) occurs when labor productivity rises faster than wage rates.
E) results from significant price increases of important resources.

Question

Quizplus · Accepted Answer

Supply-side inflation occurs when there is a significant increase in the price of important resources, such as raw materials or energy. This leads to an increase in the costs of production, which can cause firms to raise the prices of their goods and services. This type of inflation is opposite to demand-side inflation, where too much money is chasing too few goods, leading to an increase in prices.

In Part,supply-Side Inflation