Which type of inflation is triggered by increases in production that push up the costs of final goods and services?
A) supply-side
B) demand-push
C) cost-push
D) demand-side

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when the rising cost of production leads to higher prices for the final goods and services. This is typically caused by increases in the prices of raw materials, wages, or taxes, which lead to increased costs for businesses. As a result, businesses need to charge higher prices to maintain their profit margins, leading to inflation.

Which Type of Inflation Is Triggered by Increases in Production