AP Macroeconomics

Category - Macroeconomics

Changes in economic activities that are expressed in price fluctuations are attributed to inflation. All of the following are types of inflation except:
  1. Built-in
  2. Opportunity-pull
  3. Demand-pull
  4. Cost-push
Explanation
Answer - B - Opportunity-pull is not a type of inflation.

Key Takeaway: According to the Triangle Model, there are three types of inflation: built-in, demand-pull, and cost-push. Increased individual and government spending leads to demand-pull inflation, while an overall reduction in materials and goods supplies leads to cost-push inflation. Built-in inflation is caused by workers increasing their wages with prices that are passed on to the consumers by producers.
Was this helpful? Upvote!
Login to contribute your own answer or details

Top questions

Related questions

Most popular on PracticeQuiz