Answer to Question #338177 in Macroeconomics for Yaya

Question

Which one of the following statements is correct?

a. 

Cost-push inflation is triggered by an increase in consumption spending.

a. Cost-push inflation is triggered by an increase in consumption spending.

b. 

Demand-pull inflation creates a situation known as stagflation.

b. Demand-pull inflation creates a situation known as stagflation.

c. 

Cost-push inflation is described as “too much money chasing too few goods”.

c. Cost-push inflation is described as “too much money chasing too few goods”.

d. 

An earthquake can trigger cost-push inflation.

Answer 1

b. 

Demand-pull inflation creates a situation known as stagflation.