Cost-push inflation is caused by: a. an increase in short-run ...

[Pineapplelove6]

Cost-push inflation is caused by:
 a. an increase in short-run aggregate supply.
  b. a decrease in short-run aggregate supply.
  c. an increase in long-run aggregate supply.
  d. a decrease in long-run aggregate supply.

Question 2

In the presence of the crowding out effect, the purchase of Treasury bonds by the government will result in:
 a. an increase in the interest rates.
  b. a decrease in the price of bonds.
  c. a decline in the private sector spending.
  d. an increase in the private sector spending.
  e. a decrease in the rate of inflation.

[Jsherida]

Answer to Question 1

b

Answer to Question 2

d