CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

All of the following occurrences could cause demand-pull inflation except an increase in ______.
A. government purchases and exports
B. money wage rates
C. the quantity of money
Explanation: An increase in money wage rates can cause cost-push inflation.

User Contributed Comments 4

User Comment
xjarl Higher money wage rates increase the cost of labour, a factor of production, hence it's supply side which results in cost push inflation.
Sanghamitra but higher money wage rate will also improve living conditions and increase demand for goods...so? i guess "wage" rate is the critical word. wage => cost
Schuyler3 More money (increased wages) chasing the same amount of goods
gill15 So I`m assuming anything that changes SRAS will be exceptions here....Input prices increasing, future price expectations, taxes, change in exchange rate
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