What is a primary cause of sustained high inflation?

Multiple choice question for Introduction To Economics. Select an option, then review the explanation below.

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Labor unions pushing wages excessively higherOPEC significantly increasing oil pricesGovernments excessively expanding the money supplyRegulatory policies driving up production expenses

Explanation

High and persistent inflation often results when labor unions push wages up too aggressively, creating wage-price spirals. While factors like rising oil prices, excessive money supply growth, and increased production costs can influence inflation, the primary cause here is unions increasing wages excessively.

Practice related questions from the same subject.

1.Which of the following factors directly influences the supply curve?
2.Under what condition is a market considered to be in equilibrium?
3.What type of relationship is depicted when a graph shows that as the values on the horizontal axis increase, the values on the vertical axis decrease?
4.Which two elements are essential to construct a straight-line graph?
5.How can a nominal value be converted into a real value?

What is a primary cause of sustained high inflation?

Explanation

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