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Which of the Following Can Cause Cost-Push Inflation If the Economy

Question 60

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.

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