Core inflation excludes food and energy prices. It is therefore less volatile
compared to headline inflation.
Economics MCQ - Economics Section 2
The CPI is typically used for this purpose, while the PPI is more closely
connected to business contracts.
The effect of demand-pull inflation is an increase in the aggregate
demand, which in turn, leads to an increase in commodity prices in the
short run.
By increasing employee illness, the disease will decrease the output per
hour per worker, which will increase the unit labor cost. As, the unit labor
cost increases, cost-push inflation increases.
When unemployment is below NAIRU, there is a shortage of labor that
pushes up labor cost.
