________ corresponds to lower output and ________ corresponds to higher output.
A) Cost-push inflation; demand-pull inflation
B) Demand-pull inflation; stagflation
C) Stagflation; cost-push inflation
D) Demand-pull inflation; cost-push inflation

Question

Quizplus · Accepted Answer

Cost-push inflation is associated with lower output because it results from an increase in the costs of production, which can lead to a decrease in the supply of goods and services. On the other hand, demand-pull inflation corresponds to higher output because it is caused by an increase in demand across the economy, leading producers to increase production to meet this higher demand.

________ Corresponds to Lower Output and ________ Corresponds to Higher

Corresponds to Lower Output and Corresponds to Higher