A decrease in aggregate supply can result in:
A) unemployment.
B) demand-pull inflation.
C) prosperity.
D) cost-push inflation.
E) a recession.

Name: A decrease in aggregate supply can result in: A) unemployment. B) demand-pull inflation. C) prosperity. D) cost-push inflation. E) a recession.
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

Quizplus · Accepted Answer

A decrease in aggregate supply means that the cost of producing goods and services has gone up. This leads to cost-push inflation where the aggregate price level rises due to higher production costs.

A Decrease in Aggregate Supply Can Result In