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
1 answer