Which economic theory proposes that inflation can be driven by cost pressures, commonly referred to as 'cost-push' inflation?

Multiple choice question for Aggregate Supply, Unemployment And Inflation. Select an option, then review the explanation below.

Explanation

Keynesian economics identifies inflation as potentially resulting from cost-push factors, where rising production costs, such as wages or raw materials, lead to increased prices. This contrasts with other schools like monetarists who emphasize demand-side causes or money supply effects.

Practice related questions from the same subject.

1.How would eliminating income tax likely affect the total employment and the natural rate of unemployment?
2.Which type of economic policies aim to decrease unemployment by weakening union influence, implementing tax reductions, lowering unemployment benefits, and providing investment incentives?
3.At any given real wage, the equilibrium unemployment rate is calculated as the difference between which two factors?
4.What type of unemployment affects an individual who loses their job due to a decline in an industry?
5.What factor can cause the short-run Phillips curve to shift position?

Which economic theory proposes that inflation can be driven by cost pressures, commonly referred to as 'cost-push' inflation?

Explanation

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