A) demand-pull inﬂation in the late 1960s
B) cost-push inﬂation in the early 1970s
C) full-employment in the late 1990s
D) the Great Recession in 2007-2009

Question

A) demand-pull inﬂation in the late 1960s 
B) cost-push inﬂation in the early 1970s 
C) full-employment in the late 1990s 
D) the Great Recession in 2007-2009

Quizplus · Accepted Answer

The term "cost-push inflation" refers to a situation where the increase in the cost of production (such as wages, raw material prices, etc.) leads to an increase in the overall price level of goods and services in the economy. This kind of inflation was seen in the early 1970s, as rising oil prices and other input costs led to higher prices across the economy.

A) Demand-Pull Inﬂation in the Late 1960s