1. Which of the following economic changes are consistent with cost-push inflation?

a) An increase in the price level

b) Rising unemployment

c) Falling economic output

2. Which of the following are consequences of hyperinflation?

a) People spend significant time and effort buying goods and services to avoid losing purchasing power.

b) People spend money as rapidly as possible.

c) Investors make productive rather than speculative investments.

d) Wages and prices spiral downward.

Answer rating: 100% (QA)

1 Cost push reflation refers to increase in general price level due to incre... View the full answer