Macroeconomics 11th Edition by Michael Parkin

تمرين 7

Use the following figure to answer Problem. In each question, the economy starts out on the curves labeled AD 0 and SAS 0.

Some events occur and the economy experiences a cost-push inflation.
a. List the events that might cause a cost-push inflation.
b. Describe the initial effects of a cost-push inflation.
c. Describe what happens as a cost-push inflation spiral proceeds.