The correct option for an increase in the
Answer to Problem 6MCQ
From the available options, the correct option is cost-push inflation.
Explanation of Solution
When
And, cost-push inflation is a situation of inflation when the level of price increases due to an increase in energy prices such as an increase in the cost of wages or raw materials.
Therefore, the correct option is a (cost-push inflation) and all other options are incorrect.
Introduction: Price level is the average current price of goods and services in the economy that are produced in a particular interval.
Chapter 33 Solutions
Krugman's Economics For The Ap® Course
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education