Question
An economy in a recession that experiences disruptions in markets for goods used in the production of consumer goods will experience Blank______.
Multiple choice question.
steady deflation
cost-push inflation
no inflation
demand-pull inflation
Multiple choice question.
steady deflation
cost-push inflation
no inflation
demand-pull inflation
Answers
GPT-4o mini
The correct answer is **cost-push inflation**.
In a recession, when there are disruptions in the markets for goods used in the production of consumer goods, production costs may rise. This can lead to an increase in prices for consumer goods despite the overall economic slowdown, resulting in cost-push inflation.
In a recession, when there are disruptions in the markets for goods used in the production of consumer goods, production costs may rise. This can lead to an increase in prices for consumer goods despite the overall economic slowdown, resulting in cost-push inflation.