The economy starts out at full-employment equilibrium. Some events then occur that generate cost-push inflation. Which of the following events might cause cost-push inflation?     A.  a decrease in exports.     B.  an increase in the money wage rate or firms raise prices     C.  an increase in the quantity of money.     D.  a decrease in government expendit

Exploring Economics
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ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
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The economy starts out at full-employment equilibrium. Some events then occur that generate cost-push inflation. Which of the following events might cause cost-push inflation?
    A.  a decrease in exports.
    B.  an increase in the money wage rate or firms raise prices
    C.  an increase in the quantity of money.
    D.  a decrease in government expenditure.
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