Ask Question
16 April, 21:40

A. If you get a wage increase of 4%, but inflation is 5%, your real income (purchasing power) goes down. B. Cost push inflation is caused by a rightward shifting aggregate supply curve C. Demand pull inflation occurs as a result of a decrease in total spending D. Technological progress is likely to cause inflation.

+1
Answers (1)
  1. 17 April, 00:35
    0
    A. If you get a wage increase of 4%, but inflation is 5%, your real income (purchasing power) goes down.

    TRUE As the wage increase is lower than inflation rate in real term the purchase power of my wages decreases by 1%

    Explanation:

    B. Cost push inflation is caused by a rightward shifting aggregate supply curve

    FALSE it is a fall in the aggregate supply because of the increase in cost.

    C. Demand pull inflation occurs as a result of a decrease in total spending

    FALSE demand pull inflation would be when the total spending increase

    D. Technological progress is likely to cause inflation.

    FALSE we didn't expirement inflation during the industrial revolution or in the 90' with the rise of personnal computer
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A. If you get a wage increase of 4%, but inflation is 5%, your real income (purchasing power) goes down. B. Cost push inflation is caused ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers