Answer Bank cost of inputs aggregate price level cost-push inflation imports aggregate output aggregate demand long-run aggregate supply short-run aggregate supply
Complete the sentences with the correct term. Some options can be used more than once, and some may not be used at all. For the blanks use the answer bank.
Cost‑push inflation occurs when decreases until equilibrium output falls below the full employment level.
As a result, the increases.
One possible cause of cost‑push inflation is an increase in .
To combat falling
to where it and short‑run aggregate supply intersect
at the same point.
These policies cause to return to its full employment level,
and the increases even further.
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