Which of the following contributes to cost-push inflation?

• Union and union contracts
• Mark-up pricing
• Wage imitation
• All of the above
• None of the above

Which one of the following can start a demand-pull inflation?

• A sharp increase in the prices of oil
• A decrease in investment as a result of a decrease in expected future profits
• A decrease in government expenditure on goods an services
• Higher wages negotiated by unions
• A cut in the interest rate

Choose the incorrect statement:

• Deflation is a persistent and ongoing falling price level
• The Canadian core inflation rate is always higher than the actual CPI inflation rate
• The Canadian core inflation rate excludes the volatile elements of the CPI
• The Canadian inflation rate was higher in the 1970s than in the last decade
• The Canadian CPI item that has had the highest inflation rate since 1980 is Tobacco and Alcohol

Canadian firms build new pipelines across the nation. What is the effect on the quantity of real GDP demanded or aggregate demand in Canada?

• Canadian aggregate demand increases
• There is no change to either the quantity of real GDP demanded or to aggregate demand
• The quantity of Canadian real GDP demanded decreases
• The quantity of Canadian real GDP demanded increases
• Canadian aggregate demand decreases