Inflation arises due to:
A)changes in real output, changes in nominal output, and changes in the unemployment rate.
B)inflation expectations, potential output, and the non-accelerating inflation rate of unemployment (NAIRU).
C)inflation expectations, demand-pull inflation, and cost-push inflation.
D)the negative output gap, the positive output gap, and unexpected inflation.

Question

Quizplus · Accepted Answer

Inflation can arise from a variety of factors, but the three most common causes are inflation expectations, demand-pull inflation (increased demand without a corresponding increase in supply), and cost-push inflation (increased costs of production passed on to consumers). Choices A, B, and D do not accurately reflect the primary causes of inflation.

Inflation Arises Due To