Respuesta :
Answer:
1. Inflation is best described as _____.
- an upward, general trend of prices in the economy
2. Which of the following scenarios illustrates cost-push inflation?
- An increase in the price of raw materials decreases aggregate supply, pushing prices higher throughout the economy.
3. The Consumer Price Index in 2018 was 251. In 2019, the CPI rose to 257. Calculate the inflation rate from 2018 to 2019. Round your answer to the nearest tenth of a percent.
- 2.4%
4. The Consumer Price Index of any given year provides _____.
- the relative price of a basket of consumer goods as compared to base year prices
5. The rate of inflation in a hypothetical economy is projected to be 1.5% in the coming quarter. Given this information, the Federal Reserve is likely to _____.
- make efforts to raise the inflation rate because 1.5% is below the desired rate of inflation
Explanation:
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These are 100% correct
Cost-push inflation means an increase in price of raw material and wages lead to increase in cost of production and the aggregate supply decreases.
What is cost-push inflation?
It occurs when the price increase due to increase in wages provided to workers and increases in raw materials price. This increases ultimately increases the cost of production.
Cost-push inflation is better described by option (d) increase in the price of raw materials decreases aggregate supply, pushing prices higher throughout the economy.
Therefore, option d aptly describes cost-push inflation.
Learn more about cost-push inflation here:
https://brainly.com/question/4540785
