145. Cost-push inflation is characterized by a(n):

A) increase in aggregate supply and a decrease in aggregate demand.

B) increase in aggregate demand and no change in aggregate supply.

C) decrease in aggregate supply and no change in aggregate demand.

D) decrease in both aggregate supply and aggregate demand.

Type: A Topic: 4 Level: Easy E: 199-200 MA: 199-200

146. Cost-push inflation occurs because of a:

A) rightward shift in the aggregate demand curve. C) rightward shift in the aggregate supply curve.

B) leftward shift in the aggregate demand curve. D) leftward shift in the aggregate supply curve.

Type: C Topic: 4 Level: Moderate E: 194, 199-200 MA: 194, 199-200

147. The economy experiences an increase in the price level and a decrease in real domestic output. Which is a likely explanation?

A) productivity has increased C) excess capacity has decreased

B) input prices have increased D) government regulations have been reduced

Type: C Topic: 4 Level: Difficult E: 191, 196-198 MA: 191, 196-198

148. The economy experiences an increase in the price level and an increase in real domestic output. Which is a likely explanation?

A) interest rates have increased C) wage rates have fallen

B) the stock of capital has increased D) net exports have increased

Type: C Topic: 4 Level: Difficult E: 194, 199-200 MA: 194, 199-200

149. The economy experiences a decrease in the price level and an increase in real domestic output. Which is a likely explanation?

A) consumer incomes and the quantity of labor have decreased

B) interest rates and wage rates have decreased

C) the prices of imported resources have increased

D) national income abroad has increased

Type: A Topic: 4 Level: Moderate E: 199-200 MA: 199-200

150. Other things being equal, a reorganization of the OPEC cartel to permit it to increase world oil prices by 70 percent would most likely have which effect?

A) It would shift the aggregate demand curve right.

B) It would shift the aggregate supply curve right.

C) It would shift the aggregate supply curve left.

D) It would shift the aggregate demand curve right and the aggregate supply curve left.

Use the following to answer questions 151-156: