Inflationary conditions that emerge because of specific resource shortages or scarcities are called ________ inflations.
A) cost-overrun
B) sedentary-spending
C) supply-side
D) demand-side
E) parity-price

Question

Quizplus · Accepted Answer

Inflationary conditions that arise due to resource shortages or scarcities are called supply-side inflation. This can occur when there is a decrease in supply due to natural disasters, political unrest, or other factors that limit the availability of resources, leading to an increase in prices. Cost-overrun refers to inflation arising from an increase in costs of production. Sedentary-spending and parity-price are not commonly used terms in economics, while demand-side inflation is caused by excess demand relative to supply.

Inflationary Conditions That Emerge Because of Specific Resource Shortages or Scarcities