Cost-push inflation occurs when a nation's:
a. Aggregate supply rises, causing rising prices and rising unemployment.
b. Aggregate supply rises, causing rising prices and falling unemployment.
c. Aggregate demand rises, which leads to a decrease in aggregate supply curve and an increase in prices.
d. Aggregate supply falls, causing rising prices and rising unemployment.
.D
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Say's Law refers to the concept that: a. increases in aggregate demand create unionization. b. demand creates its own supply
c. supply creates its own demand. d. flexible wages affect price levels.
Economists have found that some risky behaviors increase and preventative medicine use decreases when individuals in the U.S. turn 65 and qualify for Medicare (public health insurance). This phenomenon is most consistent with which of the following concepts?
a. Moral hazard b. Time inconsistency c. Availability bias d. Confirmation bias