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Cost Push Inflation Quiz

Workers will have greater incentives to push for higher wages when government policymakers place greater concern on _____ than _____ and are thus _____ likely to adopt accommodative policies.

In the absence of an accommodating monetary policy, a push by workers to get higher wages will cause

Cost-push inflation can result when

Cost-push inflation can result when

If workers believe that government policymakers will increase aggregate demand to avoid a politically unpopular increase in unemployment when workers demand higher wages, then workers will not fear higher unemployment and their wage demands will result in

If workers decide to raise wages because they want to increase their real wages, then inflation results

If workers decide to raise wages because they want to increase their real wages, then

If policymakers set a target for unemployment that is too low because it is less than the natural rate of unemployment, this can set the stage for a higher rate of money growth and

Distinguishing a demand-pull inflation from a cost-push inflation is difficult in practice because

Theoretically, one can distinguish a demand-pull inflation from a cost-push inflation by comparing

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