[Answer] 122. What are the primary effects of cost-push inflation?

Answer: B. It reduces real output and redistributes a decreased level of real income
122. What are the primary effects of cost-push inflation?

Demand-pull inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply.It involves inflation rising as real gross domestic product rises and unemployment falls as the economy moves along the Phillips curve.This is commonly described as “too much money chasing too few goods.” More accurately it should be described as involving “too much money spent chasing …

Inflation is the decrease in the purchasing power of a currency. That is when the general level of prices rise each monetary unit can buy fewer goods and services in aggregate. The impact of inflation differs on different sectors of the economy with some sectors being adversely impacted while others benefitting.

Tue May 16 2006 14:30:00 GMT-0400 (Eastern Daylight Time) · The early 1980s recession was a severe economic recession that affected much of the world between approximately the start of 1980 and early 1983. It is widely considered to have been the most severe recession since World War II. A key event leading to the recession was the 1979 energy crisis mostly caused by the Iranian Revolution which caused a disruption to the global oil supply …

The disambiguation for inflation which was previously located at inflate offered “price inflation ” appositively as a synonym f…

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