The start of a cost-push inflation results in
A) falling GDP and falling unemployment rate.
B) raising GDP and rising unemployment rate.
C) falling GDP and rising unemployment rate.
D) raising GDP and falling unemployment rate.

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when the costs of production increase, leading to a decrease in supply. This often results in a falling GDP due to reduced economic output and a rising unemployment rate as companies may cut back on labor to manage increased costs.

The Start of a Cost-Push Inflation Results in