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Demand-Pull and Cost-Push Inflation
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Demand-Pull and Cost-Push Inflation
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12. Unemployment and Inflation / Demand-Pull and Cost-Push Inflation / Problem 1
Problem 1
What is the impact of cost-push inflation on consumer purchasing power?
A
It has no impact on purchasing power.
B
It stabilizes purchasing power as prices remain constant.
C
It decreases purchasing power as prices rise.
D
It increases purchasing power as prices fall.
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