The answer to the question is: Inflationary pressures in the United States can be attributed to three major factors: rising costs of inputs of production (cost-push), increases in aggregate demand (demand-pull) and consumer expectations of future inflation. The answer is letter C. Choices to this question are: A. U.S. goods would be less expensive than before.
B. Americans would demand higher wages.
C. Income levels in the workforce would fall.
D. The Consumer Price Index would be a negative number.
