Economics 9708 · AS & A Level · Long-run costs and economies of scale

Long-run costs and economies of scale — practice question

Within an economy, both wages and prices are increasing, but wages are increasing more quickly. Which characteristics are likely to be present in this economy?

  • Acost-push inflation: no / rise in real incomes: no
  • Bcost-push inflation: no / rise in real incomes: yes
  • Ccost-push inflation: yes / rise in real incomes: no
  • Dcost-push inflation: yes / rise in real incomes: yes

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