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