Question

Cost-push inflation can contribute to a recession by increasing prices, which ______. Multiple choice question. reduces output and leads to lower employment increases interest rates and reduces consumer debts increases output and causes real incomes to rise reduces output while increasing employment

Answer 1

Cost-push inflation can contribute to a recession by increasing prices, which: A. reduces output and leads to lower employment.

What is cost-push inflation?

Cost-push inflation can be defined as a type of inflation which typically occurs due to an increase in the quantity of production (output) per-unit costs at each level of total spending by a business firm.

This ultimately implies that, cost-push inflation can contribute to a recession by increasing prices, which causes a reduction in the level of output and eventually leads to lower employment.

Read more on cost-push inflation here: brainly.com/question/17161533

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