Multiple Choice
Which of the following can cause cost-push inflation if the economy is currently in equilibrium at full-employment GDP?
A) A flood which destroyed much of the country's crops.
B) An increase in the size of the labour force.
C) A decrease in personal income tax rates, which increases after-tax income.
D) An increase in the capital stock in the country.
Correct Answer:

Verified
Correct Answer:
Verified
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