a. Core inflation is the inflation that consumers feel when they buy their core products. b. Cost-push inflation occurs when factors such as rapid increases in the prices of imported raw materials drive up per-unit production costs at each level of output; higher costs push the price level upward. c. Demand-pull inflation occurs when total spending exceeds how much goods and services are provided at an exiting price level in an economy. d. Inflation is a rising general level of prices and is measured as a percentage change in a price index such as the CPI; deflation is a decline in the general level of prices.
a. Core inflation is the inflation that consumers feel when they buy their core products. b. Cost-push inflation occurs when factors such as rapid increases in the prices of imported raw materials drive up per-unit production costs at each level of output; higher costs push the price level upward. c. Demand-pull inflation occurs when total spending exceeds how much goods and services are provided at an exiting price level in an economy. d. Inflation is a rising general level of prices and is measured as a percentage change in a price index such as the CPI; deflation is a decline in the general level of prices.
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
Problem 11P
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Which of the following is wrong?
Select one:
a. Core inflation is the inflation that consumers feel when they buy their core products.
b. Cost-push inflation occurs when factors such as rapid increases in the prices of imported raw materials drive up per-unit production costs at each level of output; higher costs push the price level upward.
c. Demand-pull inflation occurs when total spending exceeds how much goods and services are provided at an exiting price level in an economy.
d. Inflation is a rising general level of prices and is measured as a percentage change in a price index such as the CPI ; deflation is a decline in the general level of prices.
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