Cost-push inﬂation tends to be characterized by all of the following, except
A) rising general price level.
B) falling real output.
C) rising unemployment.
D) falling unemployment.

Question

Quizplus · Accepted Answer

Cost-push inflation is caused by an increase in production costs, such as higher wages or raw material prices, which leads to a decrease in the supply of goods and services. As a result, prices rise and the general price level increases. This can lead to a decrease in real output, as businesses may not be able to afford to produce as much. It also typically leads to rising unemployment, as businesses may need to cut jobs to offset the increased costs. Therefore, the only characteristic that doesn't apply to cost-push inflation is falling unemployment.

Cost-Push Inﬂation Tends to Be Characterized by All of the Following