At the start of a cost-push inflation,
A. only real GDP changes while the price level remains constant.
B. the price level and real GDP both increase.
C. the price level rises and real GDP decreases.
D. the price level rises and real GDP does not change.
Answer:C
At the start of a cost-push inflation,
A. only real GDP changes while the price level remains constant. B. the price level and real GDP both increase. C. the price level rises and real GDP decreases. D. the price level rises and real GDP does not change.