With cost-push inflation in the short run, there will be:
A) An increase in real GDP
B) A leftward shift in the aggregate demand curve
C) A decrease real GDP
D) A decrease in unemployment
Correct Answer:
Verified
Q115: Cost-push inflation is characterized by a(n):
A) Increase
Q116: Q118: Aggregate demand decreases and real output falls Q119: Q191: The so-called ratchet effect refers to the Q192: An increase in the price level reduces Q217: When the economy is experiencing demand-pull inflation, Q261: The real-balance effect explains a shift in Q264: The real-balance and interest-rate effects help explain Q270: The long-run aggregate supply curve is upward
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