If the prices of crucial raw materials increase,
A. the short-run aggregate supply curve shifts leftward.
B. stagflation could occur.
C. a cost-push inflation could occur depending on the behavior of the Federal Reserve.
D. All of the above answers are correct.
Answer:D
If the prices of crucial raw materials increase,
A. the short-run aggregate supply curve shifts leftward. B. stagflation could occur. C. a cost-push inflation could occur depending on the behavior of the Federal Reserve. D. All of the above answers are correct.