One Policy Dilemma Posed by Cost-Push Inflation Is That

Multiple Choice

One policy dilemma posed by cost-push inflation is that

A) an increase in aggregate demand will increase inflation and the unemployment rate simultaneously.
B) tax rates can be reduced without lowering tax revenues.
C) the reduction of aggregate demand to restrain inflation will cause a further reduction in the real GDP.
D) the adjustment of aggregate demand can neither increase real GDP nor reduce inflation.