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What Do Demand-Pull Inflation and Cost-Push Inflation Cause

Question 115

Multiple Choice

What do demand-pull inflation and cost-push inflation cause?


A) Demand-pull inflation causes a recessionary gap, and cost-push inflation causes a recessionary gap.
B) Demand-pull inflation and cost-push inflation both cause an inflationary gap.
C) Demand-pull inflation causes an inflationary gap, and cost-push inflation causes a recessionary gap.
D) Demand-pull inflation causes a recessionary gap, and cost-push inflation causes an inflationary gap.

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