Which of the following scenarios illustrates cost-push inflation?(1 point)

Responses

A large decrease in consumption decreases aggregate demand, pushing prices lower throughout the economy.
A large decrease in consumption decreases aggregate demand, pushing prices lower throughout the economy.

A decrease in the price of raw materials increase aggregate supply, pushing prices lower throughout the economy.
A decrease in the price of raw materials increase aggregate supply, pushing prices lower throughout the economy.

A large increase in consumption increases aggregate demand, pushing prices higher throughout the economy.
A large increase in consumption increases aggregate demand, pushing prices higher throughout the economy.

An increase in the price of raw materials decreases aggregate supply, pushing prices higher throughout the economy.

1 answer

An increase in the price of raw materials decreases aggregate supply, pushing prices higher throughout the economy.
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