The view that union wage demands may be a source of inflation would be best associated with the
A)supply shock view of inflation
B)demand pull view of inflation
C)cost push view of inflation
D)demand push view of inflation
E)monetary view of inflation

Question

Quizplus · Accepted Answer

The cost-push view of inflation suggests that inflation arises due to an increase in production costs, such as wage demands. In this case, union wage demands are seen as causing an increase in the cost of production, which leads to an increase in prices and inflation.

The View That Union Wage Demands May Be a Source