Cost push in?ation can be caused by:
A) a substantial increase in the level of government spending.
B) a decrease in the income tax rates.
C) an increase in the pace of technological innovation.
D) an increase in the prices of oil, wheat and other commodities.

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when the costs of production increase, leading to an increase in the prices of goods and services. An increase in the prices of inputs such as oil, wheat, and other commodities directly increases production costs, which can lead to cost-push inflation.

Cost Push In?ation Can Be Caused By