Which of the following could trigger supply-side inflation?

A. A decrease in the wage rate for all workers
B. An increase in raw materials’ prices
C. An increase in the productivity of capital
D. An increase in the labor force

Answer: B

Economics

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Consider a situation where a government is deciding between two different taxes on beer. The first tax is $2.88 per case and the second is a tax of one cent per ounce placed on beer. Both are paid by the supplier

Assume both will raise the same amount of revenue this period. Pretend you are an advisor to the government and explain to them which tax they should enact.

Economics

What would happen to a production possibilities frontier (with capital goods measured on the vertical axis and consumption goods on the horizontal axis) if there is an increase in the labor force?

a. The entire frontier would shift outward. b. The upper part of the frontier would shift outward while the lower part would shift inward. c. Nothing, there would be no movement of the frontier. d. The entire frontier would shift inward. e. The lower part of the curve would shift outward while the upper part would shift inward.

Economics