Author Question: Which of the following is true of cost-push inflation? a. Cost-push inflation is associated with an ... (Read 47 times)

rosent76 · **on:** Jun 30, 2018

Which of the following is true of cost-push inflation?
a. Cost-push inflation is associated with an economic expansion.
b. Cost-push inflation is rarely experienced in developed economies.
c. Cost-push inflation is caused by a decrease in aggregate supply.
d. Cost-push inflation is identical to demand-pull inflation.
e. Cost-push inflation is the result of increased consumer spending.

Question 2

The government should levy higher taxes on the rich and use the additional revenues to provide better housing for the poor. This statement illustrates:
a. the fallacy of composition.
b. the basic principle of economics.
c. a normative economic statement.
d. a positive economic statement.