The phenomenon of inflation during recessions
A) is explained by progressive economists as "demand-pull" inflation.
B) does not occur.
C) is explained by conservative economists as "cost-push" inflation.
D) is caused by wage and price controls.

Question

Quizplus · Accepted Answer

Conservative economists explain inflation during recessions as "cost-push" inflation, which occurs when the cost of production increases, leading firms to pass on the cost to consumers through higher prices. This can be caused by factors such as higher wages, increased raw material costs, or supply chain disruptions.

The Phenomenon of Inflation During Recessions