Answer to Question #16183 in Economics of Enterprise for a n m
Will the following lead to cost-push or demand-pull inflation, or both?
(a) The Reserve Bank cuts interest rates and the economy booms.
Cost-push / Demand-pull / Both
(b) As a result of falling unemployment, trade unions become more militant and demand higher wages.
Cost-push / Demand-pull / Both
(c) The government raises the rate of GST. Cost-push / Demand-pull / Both
(d) The government cuts income tax rates and raises government expenditure at a time of near full employment.
Cost-push / Demand-pull / Both
(e) Increasing industrial concentration leads to more oligopolistic collusion to raise prices.
Cost-push / Demand-pull / Both
1
2012-10-11T08:19:28-0400
a) Cost-push
b) Cost-push
c) Demand-pull
d) Demand-pull
e)
Demand-pull
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