Cost-push inflation is characterized by a(n): increase in aggregate supply and a

Question

Cost-push inflation is characterized by a(n): increase in aggregate supply and a decrease in aggregate demand. increase in aggregate demand and no change in aggregate supply. decrease in aggregate supply and no change in aggregate demand. decrease in both aggregate supply and aggregate demand. One reason why the aggregate supply curve might shift to the left is that: consumer incomes have increased. per unit production costs have increased. government spending has increased. businesses have become more optimistic. Recently, the level of GNP has declined by $60 billion in an economy where the marginal propensity to consume is .75. This decline was caused by a fall in aggregate: expenditures of $45 billion. expenditures of $15 billion. expenditures of $30 billion. supply of $45 billion.

Explanation / Answer

4) option c 5) option c 6) option a

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