The OPEC-designed oil price increases caused the cost of producing almost everything in our economy to...
The OPEC-designed oil price increases caused the cost of producing almost everything in our economy to increase, resulting in A. demand-pull inflation B. cost-push inflation C. deflation D. depression
Homework Answers
Ans:
Option B
cost-push inflation
Explanation
cost-push inflation is a type of inflation caused by an increase in the prices of inputs such as raw material,labor. The increase in the prices will cause the cost of production to increase and leads to a decrease in the aggregate supply.
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