An Increase in the Price Level Due to an Increase

Multiple Choice

An increase in the price level due to an increase in the price of oil

A) leads to an increase in the money wage rate.
B) increases output above potential GDP.
C) creates stagflation in the short- run and will trigger a cost- push inflation.
D) creates stagflation in the short- run and may trigger a cost- push inflation.
E) leads to a decrease in the money wage rate.